Battered by difficult business conditions, then brought down by American Tissue Inc.-related debts, Perry H. Koplik & Sons Inc., is liquidating its business.
"As of yesterday, we are no longer doing business as Perry H. Koplik & Sons. The company has lost its financing, and Michael Koplik, president and CEO, said he made the decision yesterday to liquidate, after rejecting bankruptcy options, according to a report by Forestweb.
Koplik was involved in the marketing of recovered paper, pulp, tissue, and printing and writing paper. The company had already seen some layoffs in recent months.
Without elaboration, Koplik described as "not correct" the $16.7 million figure that American Tissue said in its September 10 bankruptcy petition that it owed the Koplik organization.
The bankruptcy filing of American Tissue caught a number of other paper stock dealers holding credits. The problems with this company, as well as the financial difficulties of a host of other forest products companies, have hit many paper stock dealers very hard.
Koplik’s insurer has not yet paid the American Tissue claim, so the banks have stopped funding the Koplik company. Koplik said the insurance situation has to do with interpretation, regarding "what companies are insured under the American Tissue umbrella and the terms of sale."
Koplik said he chose to liquidate rather than to file for bankruptcy, in order to help unsecured creditors to be made as whole as possible, as well as in the shortest period of time.
He said this approach would provide a higher return for unsecured creditors, and take less time, than a court filing. He said the "orderly and controlled" liquidation would involve a sophisticated reporting system implemented by experts.
In addition, he said, liquidation would provide a smooth transition so that Koplik employees can set up their own firms in order to service companies with which the Koplik organization had been doing business.
The liquidation, which is expected to take several months, will be "fair and honest," providing "the best thing for everyone," Koplik said. "That is the most important thing for me."
Market pulp sources said they were sorry to see the end of the company. "It’s sad. Michael ran a good shop, had very good people, and provided a valuable service," a marketing executive for a pulp producer said today. Forestweb