Category Archives: west virginia

Mission Trip to Wheelwright, KY: Through the Eyes of a Turnaround Professional

IMG_4057My family and I traveled to Wheelwright, KY this summer for a mission trip with St. Winifred’s Church, in Mt. Lebanon Township, Pittsburgh, PA.

I took 500+ photos while I was in Wheelwright.  I just prepared this presentation:  2015 Mission Trip: Wheelwright, KY: A City’s Turnaround During a Poverty War

I welcome comment.

All donations to Wheelwright can be made out to “World Servants Organization” and mailed to Stephanie Boyd, P.O. Box 73, Wheelwright, KY 41669.  Mark “proceeds to benefit: Wheelwright, KY” on check.

WV Transport Company, Medford Trucking, LLC, runs out of road and seeks Chapter 11 protection

By: Matthew B. Smith, Law Clerk

 

Medford Trucking, LLC filed for voluntary Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of West Virginia on June 27th, 2014.  The case has been assigned to the Honorable Robert G. Pearson under case number 2:14-bk-20354 .

heavy-truck-bigDebtor claims assets of less than $50,000 with liabilities of less than $50,000.  However the enumerated claims exceed $1 million.  Among the debtor’s 19 creditors are Petroleum Products, Inc., American Express, Bank of America, and several other companies and law firms.  Debtor is represented by Brian R. Blickenstaff of Turner & Johns, PLLC from Charleston, West Virginia.

Debtor is a transport company that was founded in 2001 and headquartered in Charleston, West Virginia.  Debtor has operated as many as 82 tractor-trailer rigs, and employed as many as 160 drivers.  Debtor carries a USDOT Number permitting it to haul non-hazardous materials within the state of West Virginia.  Debtor specializes in light freight and coal hauling.

West Virginia’s 2014 Economic Outlook

Weirton Steel, Weirton, WV

Weirton Steel, Weirton, WV

In the beginning of 2014, I was asked by the WV Attorney General’s office to participate in a town hall meeting to discuss issues impacting the WV economy.  As a business and bankruptcy lawyer,  I wanted to do my diligence.  I asked my clients and colleagues what they believed were significant factors.  Here was a punch list of the issues identified by them and those at the town hall meeting:

  • retention and attraction of young talent
  • scarcity of livable downtown spaces in major WV cities, Weirton, Wheeling, Huntington, Charleston, Martinsburg, Morgantown
  • healthcare reform proving costly for new businesses
  • business and Occupancy taxes
  • rampant drug addiction
  • revitalization of old industry to attract new industry.
  • deterioration of main streets
  • oil and gas industry presence.

Prior to the town hall meeting, I also asked Justin Saporito, my law clerk to take to google to research this topic.

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Justin found a 2014 Outlook Report (Report) for WV’s economy, produced by West Virginia University’s College of Business and Economics (one of my alma maters).

The economy of West Virginia has grown steadily over the past year with Gross Domestic Product (GDP) growing by 3.3% over the past year, ranking it tenth (10th) among U.S. states in real GDP growth.  This growth was the result of several factors such as the addition of 3,000 new jobs over the past year, a state unemployment rate that has remained 1% below the national average for the past five years, and increased exports.  Exports accounted for 16% of state economic output in 2012 compared with only 5% in 2000.  The housing and automotive sectors of the economy, important indicators of economic health, have also seen increases.  Home sales in WV are on par with home sales during the 2004-2005 housing boom and auto sales are at pre-recession levels.

According to the report, the key drivers of the economy in 2012 were coal mining, natural gas, healthcare, tourism, electrical power manufacturing, and chemical manufacturing.  The Report predicted that annual job growth would increase in the healthcare services, wholesale and retail trade, construction, and professional and business service sectors every year through 2017.

A shining light for WV’s economy has been the city of Morgantown.  Morgantown boasts an unemployment rate that is 3% below the national average with job growth above the national average with an estimated annual job growth rate of 2% in the coming years.

It is not all good news for WV however as it is ranked 47th among the 50 states in per capita income.  Another major concern is the declining and aging population.  WV’s median age is 5 years above the national average.  Another concern is the state budget, ¼ of which comes from coal tax revenue and lottery revenue.  With coal production predicted to fall through 2017, the state will have to find additional sources of revenue in the coming years. Despite these looming issues, WV is expected to have revenue growth of 3.5% for 2014.

-Justin Saporito

-Salene Kraemer

Freedom Industries, Inc. Files for Chapter 11 Bankruptcy Following Historic WV Chemical Spill

By: Justin A. SaporitoMAZURKRAEMER Law Clerk

The following case is of particular interest to Salene since she is  originally from Weirton, West Virginia and attended West Virginia University.

freedom_industries

Freedom Industries, Inc. filed a voluntary petition for Chapter 11 bankruptcy on January 17, 2014 in the United States Bankruptcy Court for the Southern District of West Virginia.  The case has been assigned to the Honorable Ronald G. Pearson.  Both assets and liabilities are estimated to be between $1 and $10 million.  Approximately 700 creditors are listed in the petition including multiple WV state agencies, service companies, and private individuals.  Multiple motions were filed along with the petition including motions to allow payments to essential trade vendors and to pay $2.4 million in unpaid taxes to the IRS.  A summary of debtor’s filings can be found here.

Debtor is a specialty chemicals manufacturer founded in 1986 and located in Charleston, WV.  It manufactures chemicals for the mining, steel, and cement industries and is wholly-owned by Chemstream Holdings, Inc.  The Charleston chemical plant is located along the Elk River and has recently been widely publicized as the cause of a chemical spill that contaminated the Elk River on January 9th, 2014 which led to state and federal states of emergency being declared.  The spill left 300,000 residents without running water for several days.  The chemical that leaked into the river is used in coal processing.  The local water supply is currently said to be safe for residents in the nine affected counties except for residents in certain towns.  Additionally, pregnant women in the affected areas are advised to drink only bottled water at this time.

Debtor is represented by Mark E. Freedlander of McGuire Woods LLP and Stephen L. Thompson from Barth & Thompson.  Debtor also filed a motion to Employ Pietragallo, Gordon, Alfano, Bosick, and Raspanti, LLP as Special Litigation Counsel.  

Fairmont General Hospital of Fairmont, WV Files for Chapter 11 Protection

By:  Justin A. Saporito, MAZURKRAEMER Law Clerk

On September 3, 2013 Fairmont General Hospital, Inc. of Fairmont, WV and affiliate company Fairmont Physicians, Inc. (“debtors”) filed voluntary petitions for bankruptcy relief under Chapter 11 of the bankruptcy code with Fairmont General Hospital, Inc. as the lead debtor.  The petitions were filed with the United States Bankruptcy Court for the Northern District of West Virginia with the assigned case numbers 1:13-bk-01054 and 1:13-bk-01055 respectively.  The cases were assigned to the Honorable Judge Patrick M. Flatley (who is originally from Salene’s hometown of Weirton by the way) and consolidated (by debtors’ request) under case number 1:13-bk-01054.

fghThe Debtors’ Chapter 11 Plan and Disclosure Statement are due by January 2, 2014.  Schedules A-J were originally due on September 17, 2013 as were a Statement of Financial Affairs, Statement of Operations, Federal Income Tax Return, and other filings.  (Please see the docket summary for a complete list of due filings.)  At the time of filing, the debtors made multiple motions including motions to extend the time before the required Schedules and other would become due, maintain existing financial institutions and practices, pay pre-filing debts and obligations, and maintain utility services.  All of these motions were granted.  For a complete breakdown of the case please refer to the docket summary.  The Meeting of Creditors has been set for Thursday, October 31, 2013 at 10:00 AM.

Fairmont General Hospital (FGH) is a private, non-profit, community hospital that was originally founded in 1939.  FGH offers a variety of health services including surgical, rehabilitation, mental health, wellness/testing, emergency services, and more.   For a complete list of the services they offer please click here.

The debtors claim assets and liabilities between $10 and $50 million.  Notably, the debtors are currently seeking a strategic partner to take over its facility.  The debtors are represented by Rayford K. Adams, III of Spilman, Thomas, & Battle, PLLC.   Spilman, Thomas, & Battle, PLLC has seven offices spread across West Virginia, Pennsylvania, Virginia, and North Carolina with three of their offices located in West Virginia.

Riverview Country Club Files for Chapter 11 Bankruptcy in West Virginia

By:  Justin Saporito, MAZURKRAEMER Law Clerk

Riverview Country Club - Flag              On September 10, 2013, the Riverview Country Club, Inc. filed a Chapter 11 Voluntary Petition in the United States Bankruptcy Court for the Southern District of West Virginia, Case No 2:13-bk-20467 in front of the Honorable Judge Ron Pearson.   Riverview Country Club is a semi-private 18 hole regulation golf course that was built in 1970 and opened in 1972.  Riverview Country Club is located on Route 17 Riverview Course Road in Madison, West Virginia 25130.  The 6,069 yard par 70 course was designed by Bob Plant and is open year round to the public.

The Debtor claims assets valued between 0$ to $50,000 with liabilities of $500,001 to $1 million listing BB&T, Dollar Bank Leasing Corp, Motive Power, Inc. Premier Bank, and USX Transportation as creditors.  The Debtor is represented by Mitchell Lee Klein of Klein Law Office located at 3566 Teays Valley Road Hurricane, WV 25526.  Mr. Klein filed a Corporate Statement Ownership Statement and Corporate Resolution.