McCain’s Opposition Research – Part 37


Via or from BuzzFeed comes an opposition research file compiled by the McCain campaign in 2008.  The document is 194 pages long.  This post begins  at the top of pg 160 and ends  at the bottom of pg 167.

This one is very long.

I have bolded the first word in each entry for ease of reading.

DDi CORP.

Bain Capital Was “Biggest” Investor In Anaheim-Based Electronics Maker DDi, Which Saw Its Stock Price Soar – Then Crash – During Dot-Com Bubble Venture Capitalists Made A Killing Off California-Based Electronics Maker DDi Corp. In 2000 And 2001Before Its Stock Price Crashed.

“The fall of Orange County electronics maker DDi Corp. hurt employees, investors and creditors but not the venture capitalists who helped bring the company public. At least $2 billion in stock value and money owed to creditors has been wiped out as a slump in the electronics industry and price-slashing by competitors in Asia helped force DDi to seek bankruptcy protection last week. But the company’s venture capitalists profited because they provided financial backing before the maker of printed circuit boards went public in April 2000, then sold their shares when the company’s outlook was still positive.”

(Jim Finkle,“Dissecting DDi,” The Orange County Register, 8/26/03)

 

 

Bain Capital Was “Biggest” Financial Backer Of DDi – Doubling Its Money By Cashing Out At Inflated Prices, Making Nearly $50 Million Profit.

“DDi is one of dozens of companies in which the early investors knew enough to bail out before the stocks crashed even as investment banks that they helped hire issued glowing forecasts about the prospects of those companies. In the case of DDi, the biggest venture capitalist was Bain Capital, a Boston firm that invested $46 million in DDi before its IPO. Bain more than doubled its money on DDI,pulling out $93 million by selling shares in two secondary stock offerings made before DDi’s finances deteriorated.”

(Jim Finkle, “Dissecting DDi,” The Orange County Register, 8/26/03)

 

 

Bain Was Largest Investor In DDi.

“Bain, which led an investment team of other venture capitalists, owned about 21 percent of DDi’s total shares. Five of the eight DDi directors in 2000 and 2001 were current or past principals of Bain Capital, according to DDi documents filed with the SEC. DDi noted the Bain dominance in its prospectus for its public offering of stock.”

(Frank Phillips, “Romney Says Profit Unknown In DDi Sale,” The Boston Globe,8/21/03)

 

 

DDi’s Story: 2,100 Jobs Lost, Billions In Shareholder Value Gone.

“DDi … has posted more than $400 million in losses over the past two years. That dismal performance has cost: 2,100 jobs. DDi had 3,800 employees when its payroll peaked three years ago. That number is now just shy of 1,700, including 300 at its headquarters in Anaheim; $1.8 billion in stock value. DDi’s stock fell to a record low of one cent Thursday, down from a peak of almost $46 in September 2000; $194 million in debt to banks and bondholders. These creditors agreed to forget about all but $91 million of the $285 million that the company owed them during negotiations leading up to the bankruptcy filing.”

(Jim Finkle, “Dissecting DDi,” The Orange County Register, 8/26/03)

 

 

Romney And His Bain Capital Partners Turned Huge Profit Before Exiting DDi Position As Price Crashed Romney And His Firm Bailed Out Before Share Prices Plummeted.

“Both Romney and Bain sold their stakes in DDi by 2001, and the stock collapsed in the two years since as the economy slumped. The sales netted Bain what appears to be a $36 million profit, nearly doubling its investment in about three years.”

(Frank Phillips, “Romney Investment Surfaces In Probe,” The Boston Globe, 8/19/03)

 

 

Romney Spokesman Claimed He Had “No Knowledge” Of Bain-DDi Dealings.

“Romney spokeswoman Shawn Feddeman claimed the governor had ‘no knowledge’ of the deal, and noted Romney left Bain in 1999.”

(Elisabeth Beardsley, “Treasurer Asks For Review Of Pension Fund Losses,” Boston Herald, 8/20/03)

 

 

Romney Signed SEC Documents For DDi Sale And Retained Interest In Three Bain Funds Involved In DDi Transaction.

“Romney had gone to Salt Lake City in early 1999 to run the Winter Olympics. But he signed the SEC’s necessary documents for Bain when his company – and he as an individual shareholder – sold their stakes in DDi in the fall of 2000 and in the winter and spring of 2001. SEC records indicate that Romney remained well into 2001 as a general partner in three of the four Bain funds that are involved in the DDi transactions.”

(Frank Phillips, “Romney Investment Surfaces In Probe,” The Boston Globe, 8/19/03)

 

 

Romney Listed On SEC Records As Bain Capital “General Partner” In 2000-01 When DDi Sales Went Through.

“Records filed at the SEC show Romney signed insider trading forms on behalf of Bain’s venture capital funds, as general partner, when the funds sold the DDi holdings in 2000 and 2001. Romney’s financial disclosure forms for 2002 filed with the State Ethics Commission show that he held the position of  ‘executive’ at Bain Capital Inc. and made a salary of more than $100,000.”

(Frank Phillips, “Bain Capital Deal Sparks Concerns,” The Boston Globe, 8/20/03)

 

 

Romney Claimed To Have No Idea How Much Profit He Made From Selling DDi Stock.

“Governor Mitt Romney yesterday continued to distance himself from a controversial stock sale, saying he took no responsibility for any role that his former company, Bain Capital, had in touting the stock’s value and that he has no idea what profit he made when he sold it. ‘I left Bain long before the events,’ Romney said in his first, but brief, public comments about DDi Corp. …”

(Frank Phillips, “Romney Says Profit Unknown In DDi Sale,” The Boston Globe, 8/21/03)

 

 

Report: Romney Personally Sold More Than $4 Million In DDi Stock In 2001.

“Romney, according to the Securities and Exchange Commission’s records, sold 182,436 shares of DDi stock in May 2001 for $4.1million. His profit is unclear.”

(Frank Phillips, “Romney Investment Surfaces In Probe,”   The Boston Globe, 8/19/03)

 

 

Romney Refused To Release Tax Forms Or Profit Records.

“Citing privacy reasons, Romney aides said the governor would not review his 2001 income tax to find out his profit on DDi. He also declined to release copies of his tax forms.”

(Frank Phillips, “Romney Says Profit Unknown In DDi Sale,” The Boston Globe, 8/21/03)

 

 

Massachusetts Pension Fund Lost Over $340,000 By Investing In DDi.

“One investor that lost heavily on DDi was the Massachusetts state pension fund, which bought the stock long before Romney was elected governor. Inits initial purchase within weeks of Lehman’s 1-Buy rating, the fund bought 11,300 shares at $30.88 a share. The initial $349,000 pension investment was sold off for $3,409 in August 2002, at share prices between 18 cents and36 cents.”

(Frank Phillips, “Romney Investment Surfaces In Probe,” The Boston Globe, 8/19/03)

 

 

Various Brokerage Houses Settled SEC Investigation For $1.4 Billion For Providing Misleading Analyst Coverage Of DDi.

“DDi is one of the companies cited in a U.S. Securities and Exchange Commission investigation into allegations of conflict of interest at U.S. brokerages. Ten brokerages settled those charges in December without admitting or denying guilt and agreed to pay a total of $1.4 billion.”

(Jim Finkle, “Dissecting DDi,” The Orange County Register, 8/26/03)

 

 

SEC: Unnamed Analyst Claimed Bain Capital Was Pushing For Positive Coverage Of DDi Stock Despite Questionable Financial Prospects.

“The SEC complaint cites an analyst, whom it doesn’t name, as saying in an e-mail written more than two months after the IPO that he was being pressured to issue a positive research report on DDi. ‘DDi and (Bain Capital) and bankers are obviously pushing for coverage and unhappy’ that no recommendation had yet been issued, the SEC cited him as saying in the June 28, 2001, e-mail. The analyst said in that e-mail that he thought the stock could fall to about $20 but also said ‘bankers want a ‘buy’ and are pushing hard.’ Two days later, Lehman analyst Louis R. Miscioscia advised clients to ‘buy’ DDi, issuing a 12-month target price of $36 per share. … On Monday, they closed at about 4 cents.”

(Jim Finkle, “Dissecting DDi,” The Orange County Register, 8/26/03)

ALLIANCE LAUNDRY SYSTEMS

Bain Capital Purchased Raytheon Unit – Renamed “Alliance Laundry Systems” – In May 1998In May 1998, Bain Capital Led $358 Million LBO Of Raytheon’s Commercial Laundry Unit, Renaming It Alliance Laundry Systems.

“Alliance Laundry Systems LLC announced today that it has completed the acquisition of Raytheon Commercial Laundry, the commercial laundry equipment manufacturing business of Raytheon Company, for approximately $358 million. Alliance Laundry Systems, headquartered in Ripon, Wisconsin, was founded by the senior management team of RCL and Bain Capital, Inc. of Boston, one of the nation’s leading private equity firms, for the purpose of this acquisition.”

(Alliance Laundry Systems LLC, Press Release,5/5/98)

 

 

At The Time, Company Officials Said They Did Not “Anticipate Any Changes In Employment Levels.”

“Alliance Laundry Systems is the largest commercial laundry equipment manufacturer in North America, with plants in Ripon, Wisconsin; Marianna, Florida and Madisonville, Kentucky. … ‘This acquisition represents the next chapter in the success story of this business,’ said Jeff Brothers, Senior Vice President Sales and Marketing. ‘Wehave no plans to alter the strategies that have made the business successful.’ The Company does not anticipateany changes in employment levels as a result of this transaction.”

(Alliance Laundry Systems LLC, Press Release, 5/5/98)

 

 

Under Bain Capital’s Stewardship, Company Closed Plants And Laid Off Workers In October 1999, Alliance Announced Closing Of Madisonville, KY Plant And Loss Of 300 Jobs.

“The Alliance Laundry Systems Plant, which employs 250 to 300 workers on three shifts, will be closed by the middle ofnext year. Employees learned of the closing Monday, when a company spokesman read a one-page announcement. … Mike Gold of Madisonville, a 15-year-employee, said the news hit very hard for him and his wife, who has been at the plant for 23 years. ‘This was a big surprise to everybody,’ he said. ‘We thought the meeting might be about a new warehouse in the area.’”

(“Laundry Plant Shutdown To Cost 250 To 300 Jobs,” The Associated Press, 10/5/99)

 

 

Stunned Mayor: “I’m In A State Of Shock.”

“If the workforce was blindsided by the announcement, local officials were also caught off guard when they heard the news. ‘I’m in a state of shock,’ said Madisonville Mayor Karen Cunningham, who said she had a meeting this week with the company for what she anticipated would be over efforts to obtain a new warehouse. The interim director the Madisonville-Hopkins County Economic Development Corp. was just as surprised. ‘We didn’t see it coming,’ admitted Danny Koon.”

(“Laundry Plant Shutdown To Cost 250 To 300 Jobs,” The Associated Press, 10/5/99)

 

 

Weeks Earlier, Alliance Had Announced Elimination Of 220 Jobs At Its Ripon, WI Facility – TheKentucky Plant Closure Brought 185 Of Those Jobs Back.

“Less than a month after it eliminated 220 employees, Alliance Laundry will bring 185 jobs back to its Ripon plant by closing a factory in Kentucky. The company will give first priority to recently terminated employees when hiring for the new positions in Ripon, said Alliance spokeswoman Patti Anderson-Shew. … Alliance laid off 220 workers Sept. 17, one week after a contract expired to make home laundry units under the brand name Amana.”

(“After Layoff, Alliance Brings Jobs From Kentucky Plant,” The Associated Press, 10/6/99)

 

 

In 2000, Alliance Undertook Corporate “Consolidation” That Eliminated 130 Jobs In Norwood, Ohio.

“Barely three months after buying the Ajax pressing and finishing equipment business from American Laundry Machinery Inc., Alliance Laundry Systems will eliminate 130 jobs in Norwood and consolidate them into an existing plant in Florida. The company told employees about the move Tuesday. … [I]t decided to merge the unit with a plant that makes washer extractors in Marianna, Fla., near Panama City, spokeswoman Patti Andresen-Shew said. While there will be ‘some potential for transfers,’ the jobs in Norwood will be eliminated, she said.”

(CliffPeale, “Company Shrinks Work Force,” The Cincinnati Enquirer, 6/8/00)

 

 

After Failed Attempt At IPO, Bain Capital Sold Alliance In 2004 For Substantial Profit Starting In 2002, Bain Tried To Take Alliance Public – Either In Canada As An Income Trust Or In U.S. Via Income Deposit Securities.

“Alliance, a portfolio company of Bain Capital and Bruckmann, Rosser, Sherrill &Co., had tried to go public via an IPO of income deposit securities, but the IPO never did materialize and Bain ultimately decided to pursue a sale instead. … In 2002, Bain had initially looked to float Alliance as an income trust in Canada, the same market that served as the predecessor to the IDS in the U.S. However, tax issues quashed that idea. When the IDS market started making some noise in the U.S. earlier this year, the investors again looked to float the company. But like most IDS filings, the Alliance floatation never got off the ground…”

(Kenneth MacFayden, “Teachers Scans IDS Graveyard For Deals,” BuyOuts, 1/3/05)

 

 

In December 2004, Bain Capital Sold Alliance Laundry For $450 Million.

“Teachers’ Private Capital, the private investment arm of Ontario Teachers’ Pension Plan, has agreed to acquire Brentwood, Tenn.-based Doane Pet Care Co. for $840 million in cash in a secondary buyout, it said Monday, Aug. 29. … The deal marks the largest private equity transaction Teachers’ Private Capital has carried out as a sole equity sponsor following its $450 million purchase of Alliance Laundry Holdings LLC from Bain Capital LLC in December 2004.”

(Kelly Holman, “OT Buys Pet-Food Maker,” Daily Deal, 8/30/05)

 

 

Bain Capital Reportedly Turned Profit Of 230% On Alliance Deal.

“Meanwhile, through the sale, both Bain and Bruckmann, Rosser, Sherrill & Co. will book a return of more than 230%, according to reports. In 1998, Bain led the acquisition of Alliance, acquiring the company in a $375.6 million LBO from Raytheon Co., which held onto a minority stake in the business.”

(Kenneth MacFayden, “Teachers Scans IDS Graveyard For Deals,” BuyOuts,1/3/05)

 

GS INDUSTRIES, INC.

In 1993 Bain Capital Purchased Kansas City Steel Company And Renamed It “GS Technologies” Bain Capital Bought Kansas City-Based Steel Manufacturer Armco Worldwide In 1993, Renaming It GS Technologies.

“Bain Capital provided the financing for a management-led buyout in 1993 of Armco Worldwide Grinding Systems of Kansas City, which was later renamed GS Technologies.”

(Robert Cushman, “GS Industries President Leaves Shortly After Merger,” Kansas City Star, 12/18/95)

 

 

GS Technologies Had Ventures In Missouri, Minnesota, Canada And Across The World.

“GS Technologies runs a mini-mill in Kansas City, Mo.;  a mill liner business in Minneapolis, consolidated companies in Chile, Peru and Italy and joint ventures in Canada, Mexico, Australia and the Philippines producing grinding products for the global mineral processing industry.”

(“GS Industries Major Player After Producers Approve Merger,” The Charleston, SC] Post And Courier, 10/6/95)

 

 

1995 Bain-Led Merger Created Even Larger Company, Now Called “GS Industries”  In 1995, Bain Capital Merged GS Technologies With Parent Company Of South Carolina’s Georgetown Steel, Creating $1 Billion “GS Industries.”

“The merger of two steel producers – including the parent of Georgetown Steel – has spawned GS Industries, with $1 billion in annual sales and 3,800 employees worldwide.  GS Technologies and Georgetown Industries completed the merger Thursday, creating the largest producer of steel wire rod in North America. … GS Industries is a privately held firm controlled by Boston-based Bain Capital, which has owned the GS Technologies unit since November 1993.”

(“GS Industries Major Player After Producers Approve Merger,” The [Charleston, SC] Post And Courier, 10/6/95)

 

 

Principal Shareholder In Georgetown Steel Before Bain Buyout Was State-Run Kuwait Investment Authority.

“Georgetown Industries’ operations include the Georgetown-based steel mini-mill, Georgetown Wire with operations in western Canada, and Florida Wire and Cable in Jacksonville, Fla. Kuwait Investment Authority will remain the principal shareholder in Georgetown Industries, Regelbrugge has said.”

(“GS Industries Major Player After Producers Approve Merger,” The [Charleston, SC] Post And Courier, 10/6/95)

 

 

Bain Capital Owned An Estimated 60% Of GS Industries After 1995 Merger.

“GS Industries is the product of a 1995 merger between Charlotte-based Georgetown Industries and GS Technologies in Kansas City, Mo. … Its primary shareholder is Bain Capital, a Boston venture capital firm that holds 60% of the company.”

(Arati Sontakay,“Steelmaker Plans Stock Sale,” Charlotte Business Journal, 11/3/97)

 

 

According To One Company Manager, Bain’s  Goal Was Always To Take GS Industries Public.

“GS Industries Inc. is a private company. In addition to Georgetown Steel, it has a steel mill in Kansas City, Mo., plus several others in foreign countries. Bain Capital, an investment group based in Boston, bought GS Industries in1995. According to Georgetown Steel Vice President George White, Bain’s goal is to eventually take the company public.”

(Rosanne Howard, “Mill Holds Its Own Despite Morale Problems,” The Myrtle Beach Sun-News, 9/29/00)

 

 

Bain Was Preparing To Take GS Public As Early As 1998.

“Charlotte-based GS Industries is interviewing investment bankers in preparation for an initial public offering that could raise as much as $200 million. The specialty-steel maker says it may go public as early as next year.”

(Arati Sontakay, “Steelmaker Plans Stock Sale,” Charlotte Business Journal, 11/3/97)

 

 

In 1997, GS Industries Endured Labor Disputes At Plants In Kansas City, Missouri And Georgetown, South Carolina In December 1997, Workers At Georgetown Steel Plant In South Carolina Went On Month-Long Strike.

“Workers remain off the job this week at a South Carolina steel plant owned by GS Industries Inc., which also owns a facility in Kansas City. Officials of United Steelworkers of America Local 7898 are contending that 595 hourly employees at Georgetown Steel Corp. are being locked out. Union members stopped working at the plant last Friday after the union rejected the company’s request that its final offer be put to the vote of the members. …‘It’s about fairness,’ [Local 7898 President James] Sanderson said. ‘They’re more interested in pleasing their investors than the people who made this plant profitable for them, the workers.’”

(Randolph Heaster, “Steel Union Says South Carolina Plant Has Locked Out Hourly Employees,” The Kansas City Star, 12/11/97)

 
“Georgetown Steel, In Georgetown, S.C., Is Under The Same Ownership As GST Steel Co. Of Kansas City. GST Steel Endured A Three-Month Strike Earlier This Year.”

(Randolph Heaster, “Steel Union Says South Carolina Plant Has Locked Out Hourly Employees,” The Kansas City Star, 12/11/97)

 

 

Labor Leader: Bain “Forced A Labor Dispute At Every Location.”

“United Steelworkers of America, Local7898 President James Sanderson … said he believes Bain is anti-labor. At contract negotiation time, ‘they’ve forced a labor dispute at every location,’ he said.”

(Rosanne Howard, “Mill Holds Its Own Despite Morale Problems,” The Myrtle Beach Sun-News, 9/29/00)

 

 

Earlier In 1997, Workers At GS’ Kansas City Plant Walked Off The Job For Three Months.

“Workers at GST Steel Co. overwhelmingly passed a new contract with the company Thursday, ending a 10-week strike. … GST Steel is owned by GS Industries Inc. of Charlotte, N.C. The parent company is controlled by Bain Capital, a Boston investment firm that financed a management-led buyout of the steel plant in 1993.”

(Randolph Heaster, “10-Week Strike Ends At GST,” The Kansas City Star, 6/13/97)

 

 

Labor Stoppage At Kansas City Plant Was “[T]he Plant’s First Strike Since 1959…”

(Randolph Heaster, “10-Week Strike Ends At GST,” The Kansas City Star, 6/13/97)

 

“Last Year, GS Endured Strikes At Two Major Plants, Including One At Its Mill In The S.C. Coastal Town Of Georgetown.”

(Stella Hopkins, “Playing To Strengths,” Charlotte Observer, 2/3/98)

 

In 2001, GS Industries Filed For Bankruptcy, Closed Its Kansas City Plant And Fired 750 Workers February 2001: GS Industries Filed For Bankruptcy And Announced Closing Of Kansas City Plant, Eliminating 750 Jobs.

“GST Steel Co., whose local ties date to the 19th century, will close as part of a bankruptcy reorganization, throwing 750 area employees out of work. … In its Chapter 11 bankruptcy filing Wednesday, GST Steel parent GS Industries Inc. of Charlotte, N.C., cited record imports of low-priced steel,which have depressed prices, and high labor costs. … In addition to GST Steel, whose formal name is GS Technologies Operating Co. Inc., four other GS Industries subsidiaries sought refuge Wednesday in bankruptcy court in Charlotte.”

(Dan Margolies And Randolph Heaster, “Shutdown Is End Of An Era,” The Kansas City Star, 2/8/01)

 

“GS Industries Inc., A Steel-Rod Producer Owned By Boston Private Equity Firm Bain Capital, Will Close Its Money-Losing Plant In Kansas City, Mo.”

(David Carey, “Bain Capital’s GS Industries Shutting Plant,” Daily Deal, 2/9/01)

 

 

“When The Plant Closed Earlier This Year … Workers Lost Severance Packages And Health Insurance Coverage.”

(Thomas Farragher and Scott Bernard Nelson, “Business Record Helps, Hinders Romney,” The Boston Globe, 10/24/02)

 

 

“[A]ll Workers Employed 10 Years Or More At The Plant Would Receive Eight Weeks’ Severance Pay…”

(Dan Margolies and Randolph Heaster, “Shutdown Is End Of An Era,” The Kansas City Star, 2/8/01)

 

Plant Closure Came On Top Of Previous Layoffs In 2000.

“Rumors had swirled at the GST plant in recent months about the possibility of a company bankruptcy as well as a plant shutdown. Both union and salaried employees were laid off late in 2000.”

(Dan Margolies and Randolph Heaster, “Shutdown Is End Of An Era,” The Kansas City Star,2/8/01)

 

 

Domino Effect: Months Later, Nearby Plant That Relied On GS Industries As Supplier Had To Shut Its Doors, Throwing More Than 100 People Out Of Work.

“The fallout from the shutdown of GST Steel Co. earlier this year continued last week, when Wire Rope Corp. of America Inc. announced plans to close its Kansas City plant. Wire Rope’s facility at 2100 Manchester Road has 107 hourly and salaried employees who will be laid off beginning Jan. 25, said Charles Salanski, president and chief operating officer. … Wire Rope’s Kansas City plant also was singled out for closing because of the loss of its nearby supplier, GST Steel. Until it closed in June, GST supplied rods for the Wire Rope facility.”

(Randolph Heaster, “Citing Slowdown, Wire Rope To Close KC Plant,” The Kansas City Star, 11/20/01)

 

 

Romney Was CEO Of Bain Capital And Held Financial Stake In Company At Time Of Kansas City Layoffs.

“Although he gave up running day-to-day operations at the venture capital firm in order to head the Salt Lake Winter Olympics, he remained CEO and held his financial interest in the company through August 2001. That includes the period when the Ampad factory in Buffalo was closed, and when the Kansas City-based GST Steelplant was shut down and workers laid off.”

(Stephanie Ebbert and Yvonne Abraham, “Camps Spar Over Romney Word Choice,” The Boston Globe, 10/31/02)

 
Bain Capital Called “Bully On The Block” As Workers Blamed Romney And His Firm For Plant Closing.

“Out-of-work steelworkers in Kansas City, for example, blame Romney and Bain Capital for decisions that led to last year’s bankruptcy of a steel mill that opened its doors in 1888. Bain bought the operation, GST Steel Co., in 1993. Workers said the new owners cleaned house and brought in an inexperienced management team. DanMisel, who worked at GST Steel for 35 years, said Bain came in ‘like the bully on the block,’ assuming its managers knew how to run the operation better than anyone already in place.”

(Thomas Farragher and Scott Bernard Nelson, “Business Record Helps, Hinders Romney,” The Boston Globe, 10/24/02)

 

 

Romney Was Running Bain Capital When Kansas City Plant Endured 10-Week Strike In 1997 – Its First Labor Stoppage In Almost 40 Years.

“In 1997, two years before Romney left Bain to run the Winter Olympics, the Kansas City plant endured its first strike in four decades. After a 10-week walkout, union officials said they offered to work with managers to improve the plant’s competitiveness, but that the Bain-imposed managers weren’t interested.”

(Thomas Farragher and Scott Bernard Nelson, “Business Record Helps, Hinders Romney,” The Boston Globe, 10/24/02)

 

 

 Pension Benefit Guaranty Corporation Had To Assume Control Of Two Underfunded GS Pension Plans Affecting Over 1,000 Former Employees At Kansas City Facility.

“The Pension Benefit Guaranty Corporation today announced that it has taken over two underfunded pension plans covering more than 1,000 people who worked at the Kansas City, Mo., facility of GS Technologies Operating Co. The company is a subsidiary of GS Industries Inc., a bankrupt producer of steel rod products. ‘PBGC has stepped in because the company is liquidating in bankruptcy and the pension plans do not have enough money to pay all benefits,’ said PBGC Executive Director Steven A. Kandarian.”

(Pension Benefit Guaranty Corporation, Press Release, 8/5/02)

 

 

GS Had Roughly $44 Million Worth Of Underfunded Pension Obligations.

“The GST Steel Company Pension Plan and the GS Technologies Pension Plan have a combined underfunding of about $44 million,according to PBGC estimates. The agency will take over the plan’s assets and use PBGC insurance funds to pay the guaranteed pension benefits of covered workers.”

(Pension Benefit Guaranty Corporation, Press Release, 8/5/02)

 

Former Employees Still Suffered, As Roughly 200 Workers Lost Their $400/Month Pension Supplements.

“Although the move will guarantee basic pension payments, former employees still stand to lose as bankrupt parent company GS Industries Inc. liquidates its assets. About 200 former GST workers who haven’t reached retirement age will lose a $400 monthly pension supplement that the Pension Benefit Guaranty Corp. is not obligated to pay, said John Wiseman, a United Steelworkers of America representative in Independence.”

(StephenRoth, “Agency Takes Over Pensions Covering Ex-GST Workers,” Kansas City Business Journal, 8/16/02)

 

 

Workers’ Access To COBRA Health Coverage Expired Roughly Six Months After GS Industries Filed For Bankruptcy.

“Wiseman said.   GSI also has informed former employees that their access to health care coverage through COBRA will expire Sept. 5. … The loss of that coverage could be disastrous for former workers, some of whom, Wiseman said, have acquired asbestosis from years of working in the decades-old mill. ‘We have people looking at the prospect of $2,000 to $3,000 per month health care premiums, and they just can’t afford that,’ he said.”

(Stephen Roth, “Agency Takes Over Pensions Covering Ex-GST Workers,” Kansas City Business Journal, 8/16/02)

 

 

No GS Industries Representatives Were Available To Comment:

“GSI Chief Executive Mark Essig was unavailable for comment. An employee said GS Industries, based in Charlotte, N.C., has sold all of its assets and no longer is in business.”

(Stephen Roth, “Agency Takes Over Pensions Covering Ex-GST Workers,” Kansas City Business Journal, 8/16/02)

 

GS Industries Ceased To Exist In 2003 After Liquidating Its Assets And Closing Up Shop June 2003: Company Had Five Remaining Employees To “Remove The Nameplates And Lock The Doors” After Company’s Assets Had Been Sold.

“GS Industries filed for Chapter 11 on Feb. 7, 2001, in the U.S.Bankruptcy Court for the Western District of North Carolina in Charlotte. The company is down to five employees, and there’s little left to do but remove the nameplates and lock the doors because over its 28 months in bankruptcy, GS has sold off all assets.”

(Greg Johnson, “GS Industries Can Liquidate,” The Deal, 6/16/03)

Advertisements
Explore posts in the same categories: Politics

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: