Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, April 17, 1990 TAG: 9004170091
SECTION: BUSINESS PAGE: A5 EDITION: METRO
SOURCE: Associated Press
DATELINE: FRONT ROYAL LENGTH: Medium
Tousignant, who was president of Avtex Fibers Front Royal Inc., and James E. Crutchfield, who was president of Avtex Fibers Inc. in Berwyn, Pa., want to start the polypropelene plant.
Polypropelene is used in disposable diapers and medical supplies.
Shenandoah Fibers will employ 25 people and operate seven days a week, 24 hours a day, Tousignant said. All its employees probably will be former Avtex workers, he said.
Avtex manufactured 25 million pounds of polypropelene annually. Its main rayon manufacturing business is what got the plant into the environmental trouble and forced its closing last November.
Despite his and Crutchfield's former positions with Avtex, Tousignant said Shenandoah Fibers "is not related to Avtex in any manner whatsoever. "It will be a new business, new money," he said. But "some of the customers will be the same and some of the employees will be the same."
Avtex has filed for protection under Chapter 11 of the U.S. bankruptcy code, seeking shelter from its creditors. Tousignant is the representative in Front Royal of Avtex's trustee in bankruptcy proceedings. He said he'll leave the position when Shenandoah Fibers begins operation.
Tousignant denied that the creation of Shenandoah Fibers is a way for Avtex to funnel money into it to shield itself from its creditors.
"There's nothing to do with Avtex in this - no Avtex money, no Avtex nothing. We've got to get that perception out of here," he said.
He said the operation of Shenandoah Fibers will pose no environmental threat.
by CNB