Shiloh bankruptcy could mean $150,000 loss for Wellington

WELLINGTON — Shiloh Industries has declared bankruptcy, and now village officials are worried they may never get an estimated $150,000 in unpaid utility bills. The Valley City-based auto-parts manufacturer filed Aug. 30 in the U.S. Bankruptcy Court in Delaware, with intentions of selling the bulk of its assets for $218 million. Wellington Finance Director Vanya Pfeiffer said there's no guarantee the village will get any or all of the amount due for electric, water, sewer and storm sewer service billed to Shiloh's plant at 350 Maple St. "That dwarfs all of the COVID latenesses and other things that we've had. It's just a $150,000 hit right now," Councilman Guy Wells said in a meeting Monday. "I hope that we don't take a larger hit than what I'm estimating," Pfeiffer said. She told the Finance Committee she will file a claim with the court, seeking payment. Pfeiffer said she reached out to a contact at Shiloh, "and she said that they were able to write off a lot of debt and that they had a good cash flow." In a followup phone interview, Pfeiffer said she was blindsided by Shiloh's bankruptcy filing. Wellington does not want to lose the factory's business, and she is hopeful the sale goes through. The village is already hurting financially because of the pandemic. "We're holding our own," Council President Gene Hartman said — but the Regional Income Tax Agency has warned collections are down 9 percent over 2019, a $159,000 reduction. "So we are watching our expenses," Hartman said. "Everybody is remaining diligent with regard to what we're purchasing and making sure we only purchase what we need." The Shiloh situation, if it results in nonpayment, would only deepen those worries for the village. And officials wouldn't be able to simply shut off service to the plant without taking legal action, Pfeiffer said. Under a Chapter 11 petition, Shiloh Industries has agreed to sell nearly all its assets to Grouper Holdings, a subsidiary of MiddleGround Capital. "Shiloh's operations will continue throughout the sale process and the Company will continue to meet customer demand as the automotive industry recovers from the COVID-19 pandemic," said a statement from the company. Contact Jason Hawk at (440) 329-7122 or news@lcnewspapers.com.