Stinger files for bankruptcy

LIBBY — Stinger Welding Inc., the span and bridge builder that during its heyday employed more than 100 workers in Libby, has filed for Chapter 11 bankruptcy protection.

Stinger Welding lost its chief executive officer, Carl Douglas, when his airplane crashed into Swede Mountain near Libby Dec. 19.

The bankruptcy filing, which will protect Stinger from creditors for at least 30 days, was filed in Phoenix. Stinger Welding’s home office is in Coolidge, Ariz.

Douglas’ widow, Stephanie Jordan, filed the petition March 8 seeking Chapter 11 bankruptcy protection for the company started by her husband, whose business was left with heavy debt.

The motion for bankruptcy protection was granted March 19 by Arizona Bankruptcy Court Judge Brenda Moody Whinery.

Chapter 11 allows the debtor to propose a plan for post-bankruptcy profitability. The plan may include trimming costs and seeking new sources of revenue or income while temporarily holding creditors at bay.

The petition lists more than 100 creditors, including 14 from Libby and a pair from Bonners Ferry, Idaho, and Huson.

For the top 20 creditors the total debt owed is $5.863 million.

Top creditors include the Internal Revenue Service, owed $875,922; General Steel & Supply Co. of Dickinson, N.D., $849,567; Washington Department of Revenue, $760,866; Mountain States Steel, $734,502; and Tommy Fisher, CEO of Fisher Sand & Gravel Co. of Dickinson, $536,990.

After Jordan filed, there was a flurry of legal requests seeking to prevent Stinger from obtaining bankruptcy protection.

Attorneys for Fisher Sand & Gravel and Steel Girder filed a motion to dismiss the Stinger bankruptcy petition as an unauthorized and bad-faith filing by Jordan “because there is continuing loss and diminution to the estate with no prospect of rehabilitating the debtor,” attorneys for Ryley, Carlock & Applewhite wrote.

“Apparently, they feel this is a move more to protect Stephanie Jordan’s assets than really rehabilitate Stinger Welding,” said R. Allan Payne, the attorney for the Lincoln County Port Authority, which has been leasing land to Stinger and is among the creditors.

Payne, on behalf of the Port Authority, also filed a motion to stay the motion for bankruptcy protection.

Payne said the Chapter 11 filing will only delay the inevitable, which is the likely demise of Stinger.

Payne is confident the Port Authority eventually will win its case against Stinger for ownership of the Stinger building, which Stinger called its Northwest Operations base. The Port Authority allowed Stinger Welding to use the building as collateral to secure a loan.

“I am confident the Port Authority will retain ownership of the building,” Payne said. “This will delay things, but in the end I think things will turn out our way.”

Paul Rumelhart, executive director of the Kootenai River Development Council and director of  the Port Authority, said he learned of the bankruptcy filing Tuesday.

“Right now, everyone’s hands are tied. It will take a while before we can determine what paths to take,” Rumelhart said. “There are prior liens, unpaid taxes and money owed to creditors. It’s going to take a while to sort out.”

Rumelhart defended the Port Authority for bringing the bridge and span builder to Lincoln County.

“Stinger was a good thing for Lincoln County,” he said. “[To those who criticize] I’d ask them what they’ve done for Lincoln County. At one point there were 104 jobs there. For those who are critical, I’d say it’s not like we funded a line of credit. What we invested in is the building, and it’s still there. I am excited about the potential for the building.”

Lincoln County Commissioner Tony Berget said as much as he would have liked to see Stinger do well in the county, it’s time to move on.

Berget said jobs are a priority.

“We need to get another business in that building,” Berget said. “Right now, we got families that are split between here and in North Dakota.”

Among the 14 local creditors is Rick Gullingsrud of Rick’s Rental, owed about $3,000 by Stinger.

“I had heard they were probably going to go under, so I had been calling for about four months trying to get paid,” Gullingsrud said. “It’s only $3,000, but it was my $3,000. Yeah, I’m pissed.”

Among other businesses owed by Stinger are the Sandman Hotel, the Evergreen Motel, the city of Libby, Ace Enterprises, Lincoln County Landfill, Lincoln County treasurer, Northern Energy Co., St. John’s Lutheran Hospital, T.L. Ward Trucking, Treasure Mountain Restaurant and the Venture Motor Inn.

Stinger Welding has been laying off workers a few at a time. Stinger workers in Coolidge still are working.

LIBBY — Stinger Welding Inc., the span and bridge builder that during its heyday employed more than 100 workers in Libby, has filed for Chapter 11 bankruptcy protection.

Stinger Welding lost its chief executive officer, Carl Douglas, when his airplane crashed into Swede Mountain near Libby Dec. 19.

The bankruptcy filing, which will protect Stinger from creditors for at least 30 days, was filed in Phoenix. Stinger Welding’s home office is in Coolidge, Ariz.

Douglas’ widow, Stephanie Jordan, filed the petition March 8 seeking Chapter 11 bankruptcy protection for the company started by her husband, whose business was left with heavy debt.

The motion for bankruptcy protection was granted March 19 by Arizona Bankruptcy Court Judge Brenda Moody Whinery.

Chapter 11 allows the debtor to propose a plan for post-bankruptcy profitability. The plan may include trimming costs and seeking new sources of revenue or income while temporarily holding creditors at bay.

The petition lists more than 100 creditors, including 14 from Libby and a pair from Bonners Ferry, Idaho, and Huson.

For the top 20 creditors the total debt owed is $5.863 million.

Top creditors include the Internal Revenue Service, owed $875,922; General Steel & Supply Co. of Dickinson, N.D., $849,567; Washington Department of Revenue, $760,866; Mountain States Steel, $734,502; and Tommy Fisher, CEO of Fisher Sand & Gravel Co. of Dickinson, $536,990.

After Jordan filed, there was a flurry of legal requests seeking to prevent Stinger from obtaining bankruptcy protection.

Attorneys for Fisher Sand & Gravel and Steel Girder filed a motion to dismiss the Stinger bankruptcy petition as an unauthorized and bad-faith filing by Jordan “because there is continuing loss and diminution to the estate with no prospect of rehabilitating the debtor,” attorneys for Ryley, Carlock & Applewhite wrote.

“Apparently, they feel this is a move more to protect Stephanie Jordan’s assets than really rehabilitate Stinger Welding,” said R. Allan Payne, the attorney for the Lincoln County Port Authority, which has been leasing land to Stinger and is among the creditors.

Payne, on behalf of the Port Authority, also filed a motion to stay the motion for bankruptcy protection.

Payne said the Chapter 11 filing will only delay the inevitable, which is the likely demise of Stinger.

Payne is confident the Port Authority eventually will win its case against Stinger for ownership of the Stinger building, which Stinger called its Northwest Operations base. The Port Authority allowed Stinger Welding to use the building as collateral to secure a loan.

“I am confident the Port Authority will retain ownership of the building,” Payne said. “This will delay things, but in the end I think things will turn out our way.”

Paul Rumelhart, executive director of the Kootenai River Development Council and director of  the Port Authority, said he learned of the bankruptcy filing Tuesday.

“Right now, everyone’s hands are tied. It will take a while before we can determine what paths to take,” Rumelhart said. “There are prior liens, unpaid taxes and money owed to creditors. It’s going to take a while to sort out.”

Rumelhart defended the Port Authority for bringing the bridge and span builder to Lincoln County.

“Stinger was a good thing for Lincoln County,” he said. “[To those who criticize] I’d ask them what they’ve done for Lincoln County. At one point there were 104 jobs there. For those who are critical, I’d say it’s not like we funded a line of credit. What we invested in is the building, and it’s still there. I am excited about the potential for the building.”

Lincoln County Commissioner Tony Berget said as much as he would have liked to see Stinger do well in the county, it’s time to move on.

Berget said jobs are a priority.

“We need to get another business in that building,” Berget said. “Right now, we got families that are split between here and in North Dakota.”

Among the 14 local creditors is Rick Gullingsrud of Rick’s Rental, owed about $3,000 by Stinger.

“I had heard they were probably going to go under, so I had been calling for about four months trying to get paid,” Gullingsrud said. “It’s only $3,000, but it was my $3,000. Yeah, I’m pissed.”

Among other businesses owed by Stinger are the Sandman Hotel, the Evergreen Motel, the city of Libby, Ace Enterprises, Lincoln County Landfill, Lincoln County treasurer, Northern Energy Co., St. John’s Lutheran Hospital, T.L. Ward Trucking, Treasure Mountain Restaurant and the Venture Motor Inn.

Stinger Welding has been laying off workers a few at a time. Stinger workers in Coolidge still are working.