
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, April 4, 1990                   TAG: 9004040680
SECTION: BUSINESS                    PAGE: C7   EDITION: EVENING 
SOURCE: Associated Press
DATELINE: PHILADELPHIA                                LENGTH: Short

CREDITORS GET WARNING ON AVTEX

Unsecured creditors of Avtex Fibers have been told chances are not good that they can collect their debts from the company, which has sought bankruptcy protection.

The company in Front Royal, Va., and its parent company in Pennsylvania filed for protection from creditors under Chapter 11 of the Federal Bankruptcy Act after losing their source of revenue when the Virginia plant shut down because of environmental violations in November.

The company owes more than $3 million to its largest 20 unsecured creditors. It has more than 300 unsecured creditors.

"All of the assets at the Front Royal level are pledged to various lenders. There is substantial unsecured debt," Bruce Lesser said Tuesday at a hearing with the creditors. "There is substantial secured debt. The value of the assets is questionable because of the existence of environmental problems."

Lesser said the main asset is the plant and property in Front Royal.

Despite the problems, efforts are being made to reopen the plant, once one of the northern Shenandoah Valley's largest employers.

Lesser confirmed that Avtex President David Tousignant and several others are interested in restarting the polypropelene plant at the site.

by CNB