Marcal Paper Goes Chapter 11

[SemperFidelis]

Yesterday, Marcal Paper Mills of Elmwood Park, NJ filed for protection under Chapter 11. The company is making every effort to restructure and continue operations.

Though not a large customer of the NYS&W, the closing of the mill would negatively impact the NYS&W as it is a reciever of loaded boxcars of waste paper, and a very rare shipper of loaded boxcars of finished product.

[Steve F45]

if they went under, be alot of jobs lost and a loss to the community.

[SemperFidelis]

Marcal employs nearly 1500 people in blue collar, manufacturing jobs. Exactly the type of jobs that are disappearing in New Jersey.

Keeping the fingers crossed and hoping they pull though.

[Steamtown Observer]

About 15 years ago, the older Marcalus son died unexpectedly (not the one who used to do the commercials). I don't think the company ever recovered from his loss.

[trainfreak]

If they go under and shut down...it will be a change not seeing that bright neon sign while traveling on Rt 80.

[washingtonsecondary]

Lots of companies file for Chapter 11. Alot pull out of it. Hopefully they will too. I'd be more worried if it was Chapter 13, then they would be toast.

[SemperFidelis]

From what I understand, the younger son (the son of a multi-millionaire) died of a heart attack while personally helping out on the production floor when a paper machine went down.

Too bad there's not more businessmen out there like that anymore...

[blockline4180]

I could be wrong, but I had thought or read that Marcal hasn't gotten rail service in at least 3 years!

[SemperFidelis]

2 NS boxcars filled with scrap on property right now and 1 at an outside warehouse near Passaic Jct.

The only services Marcal has cut back on are coal deliveries to the now shuttered co-gen plant on property and deliveries of chlorine, which apparently is no longer used in the process.

[trainwayne1]

My ex-employer, a trucking company, did business with Marcal about 3 years ago. After months of waiting to get paid, the company was forced to stop picking up frieght for them. They have been in money trouble for several years. One can only hope that the NYS&W isn't left holding the bag on a lot of payables, since, under chapter 11, they may only get pennies on the dollar as an unsecured creditor

[Ken W2KB]

2 NS boxcars filled with scrap on property right now and 1 at an outside warehouse near Passaic Jct.

The only services Marcal has cut back on are coal deliveries to the now shuttered co-gen plant on property and deliveries of chlorine, which apparently is no longer used in the process.

The chlorine was likely used in the electric generation operation so ceased when that closed.

[EDM5970]

I used to switch a chlorine plant on a regular basis. I was told that chlorine was used as component in bleach, and that bleach was used in the paper making process. Perhaps 50% of that particular plant's output went out by truck, so its possible that Marcal is trucking their chlorine in.

[RichM]

Right, chlorine was the bleaching agent in most white paper manufacturing. Many paper producers have moved to alternative technologies to bleach: oxygen, hydrogen peroxide or chlorine dioxide for example.
Only makes sense in an area with the population density of Elmwood Park that Marcal changed its bleaching technology.

OK, since everyone is so concerned, how about some support?

Anybody buy any paper napkins, towels or toilet paper this weekend? What brand did you buy? Or is this just a philosophical discussion?

[SemperFidelis]

I buy Marcal paper towels. The toilet tissue is a little coarse by my standards...

[pennsy]

Hi All,

Please keep us informed on how this turns out. Hard to believe that a company with so many diversified paper goods and with a huge market, for reusable and renewable/ disposeable paper goods can go bust. I'll go along with the theory that it is just a reorganization. And a ply to get out of many debts.