Freedom's fate remains on hold

By JIM LEUTE ( Contact )   Wednesday, March 4, 2009
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— The fate of a troubled Janesville manufacturer was delayed until next week as negotiations continue between a potential buyer and the company's primary creditor.

With liabilities greater than assets, Freedom Plastics entered a court-supervised receivership sale in early February in hopes it could stay in business in Janesville.

One week later, the company's receiver notified the state that more than 100 Freedom employees would be laid off in April unless a buyer steps forward and decides otherwise.

Freedom makes PVC pipes and fittings and supplies the wastewater, plumbing, irrigation and industrial markets. It's been hit hard by a depressed construction economy and mounting costs for raw materials.

Michael Polsky, the court-appointed receiver, said 12 bidders registered for Monday's auction. Numerous rounds of bidding were conducted over a 13-hour period, he said.

The unidentified high bidder offered to buy the company as an operating business for an amount that's less than the approximate $20 million Freedom owes its primary creditor, Bank of America.

The sale includes Freedom's land, buildings and equipment in Janesville and Florida, but it does not include inventory or accounts receivable.

Because the offer is for less than what the bank is owed, the bank has the right to consent to the sale, Polsky said Tuesday during a court hearing that was originally scheduled to wrap up the sale.

"The buyer, the bank and I are all working together to get this done as quickly and efficiently as possible," Polsky said, adding that negotiations continued through Monday night and could not be completed by Tuesday's scheduled court hearing.

Rock County Judge Kenneth Forbeck continued the hearing until next Monday.

reader COMMENTS
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(34)
CB210
Mar 8, 2009 at 10:35 p.m.
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Freedomwrkr...do you know if the court date is still set for Monday? Do you think the company is being sold as a whole? Oh the curiosity!!!

freedomwrker
Mar 7, 2009 at 6:13 p.m.
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most likely....Georgia Gulf...should be more details monday

fpsouth
Mar 6, 2009 at 8:12 a.m.
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LandOBrave, you have obviously been listening to the rumors and speculation that has run rampant through this process. Like those that have commented before me, I too am grateful that I am continuing to draw a paycheck. I could easily be one of the several that have been laid off over the past several months either from Freedom or another company. We have seen numerous companies in our area not simply cut back but go out of business completely. We may not know what the future will bring with a new owner(s), but at least there is some hope that the company will survive, unlike so many others. Further, I think we all need to get used to a little uncertainty in our lives. I'm sure none of us will feel entirely secure in an economy as weak as ours.

landObrave
Mar 6, 2009 at 7:12 a.m.
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to freedom south: how will you feel when your plant is shipped to Saudi Arabia?

landObrave
Mar 6, 2009 at 7:06 a.m.
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I find this a completely sad situation. With all the struggles the Janesville community is already suffering with the loss of GM and all the sister companies; not to mention how the loss of GM has effected many small business' in the area; this was the last thing Janesville needed. Although I do not work at Freedom, my heart goes out to those who do / had(?) and their families. I think the whole situation could have been handle better by the upper management also.

freedomsouth
Mar 5, 2009 at 8:15 a.m.
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As a freedom south employee all i can say is that i am thankful for still having a job at this point.i worried what i was going to do.i have cam to the realization that all i can do is hope for the best.it is out of our hands.i am going to continue to do the best job that i can do for freedom while we are still here. i think all freedom employees should have the same outlook.i pray we still have jobs at the end of this.

longlinerjd
Mar 4, 2009 at 10:43 p.m.
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While I work for Freedom in florida and go through all this mess, I'm reminded that during this period of uncertainty, I still have a job. For that I'm grateful. As for the management team, I think they're more stressed than I am. Any time a new company comes in, management is usually the first ones to be replaced. So please give them a break.

brewcrewtrue
Mar 4, 2009 at 8 p.m.
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pb594 you've never taken a break and read a report on the internet.This person did nothing wrong.Maybe you should just back off.

smiles6
Mar 4, 2009 at 7:52 p.m.
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I hope that the new owner keeps the good employees that Freedom had!!!!

tguy
Mar 4, 2009 at 6:41 p.m.
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What can ya do?

Gandalf
Mar 4, 2009 at 3:46 p.m.
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I think once the dust settles, the new owner will have a gem of an operation for an excellent price. This should give the operation a little more elbow room for future growth, too.

CB210
Mar 4, 2009 at 3:29 p.m.
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*there* oops :-)

CB210
Mar 4, 2009 at 3:01 p.m.
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PB594...their are laws in place to protect employees. Check out W.A.R.N.

I think the bottom line here is that we all understand what will be will be. The frustration is the lack of communication.

cabinmama
Mar 4, 2009 at 2:58 p.m.
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But they were TOLD they would be updated and they were left hanging. The employees there have been through a tremendous amount of stress and all I'm saying is that they should of been updated by their superiors rather than disregarded.

Put yourself in their place and imagine waiting all day to hear if you have a job or not, but you hear nothing. The next morning you find information in the newspaper that should of been shared with you, as you were told it would be.

These are real people with families and bills and needs. They aren't working there for fun. They need the income and they are anxious to hear if it will continue or not. Give them a break. You'd be stressed, too.

I just feel for them, that's all.

janesvillean
Mar 4, 2009 at 2:54 p.m.
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I do sympathize with the employees who wonder if their jobs are hanging by a thread, but the article merely reports on what the receiver told the state about the bidding. That really isn't something that the current owners are privy to. The receiver works for the creditors, not the owners, and his primarily responsibility is seeing that the debt is paid off or settled.
.
I would concentrate on the good news that the buyer is interesting in purchasing it as a going concern. This is far, far better than a liquidation, and indicates that at least some employees will be able to keep their jobs. Let's hope all goes well with the financing.

PB594
Mar 4, 2009 at 2:23 p.m.
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Consideration I agree but atleast for now everyone is working. This also could of been handled like other business sales where the company is sold with no one knowing and when everyone leaves Friday for the weekend movers and riggers come in and gut the place by Sunday night and when the workers come in Monday their is nothing left???

cabinmama
Mar 4, 2009 at 2:17 p.m.
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I do not work for that company. I feel bad for those who do and what they are going through. I would guess that IF people from Freedom are here talking, it's because they've not heard from their superiors concerning assignments or work that needs to be done...it seems that non-communication is an issue there.

And where do YOU work?

cabinmama
Mar 4, 2009 at 2:08 p.m.
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I also agree with CB210. The employees were told that they would be updated by Tuesday morning and nothing was said of any significance. What would that be like for people? Think about it. Just a little consideration would of gone a long way.

PB594
Mar 4, 2009 at 1:21 p.m.
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Maybe the employees from Freedom that are commenting here have way to much time on their hands to be doing non work related activities on Freedoms computers on Freedoms time. Maybe when they had layoffs a while back may you should of been one of them.

freedomwrker
Mar 4, 2009 at 1:15 p.m.
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for everyone complaining about the lack of information...there really isnt much to tell... you would still be complaining if all that was announced is that they are still bidding. If it's such a big deal that you want information (which will be nothing new), get up and go talk to one of the sr managers or someone that would have something...sitting around complaning gets you nowhere.

CTBP
Mar 4, 2009 at 1:13 p.m.
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That's sad. I'm totally agree with CB210.We got
update from the Gazette and WCLO.
SHAME SHAME SHAME!!!

Gandalf
Mar 4, 2009 at 1:07 p.m.
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I think that it's important to remember that current management has abosutely nothing to do with this auction and the associated proceedings. They are not in the loop between the bidder and the court. Aside from perhaps their legal counsel, Freedom's management would not have sufficient knowledge to add to what little information is already available.

CB210
Mar 4, 2009 at 12:57 p.m.
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people_arent_bright & not_sure: To me, the entire point of this is that NOTHING was communicated by Senior Management (at least in my department). Senior Management could have had the COURTESY of simply sending an email to all employees with an update...even if the update was that the proceedings were not finished. How difficult would that have been? It's just a shame that we have to get an update from the newspaper rather than those who are supposed to be our leaders.

people_arent_bright
Mar 4, 2009 at 11:55 a.m.
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not sure: it appears you're the only one with an common sense on this blog. The newspaper can say whatever it wants, within reason, because they're not part of the court proceeding.

not_sure
Mar 4, 2009 at 11:45 a.m.
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Does the article tell you who the buyer is? Does the article tell you if the buyer plans to continue employment in Janesville? Does the article answer any of the questions that concern your future as an employee of the company? No, it does not. The waiting is nerve wracking, but there really isn't any information in the article that can lead anyone to answer any of those questions. Worrying will only make the wait worse.

notfromjvl
Mar 4, 2009 at 11:27 a.m.
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not_sure: Being an employee at Freedom, the only thing we have been told since Monday is "sorry, we can't tell you anything other than some ironing out of details, but don't worry". Sorry, but the Gazette has just reported more than that to us and the details they don't have makes it all the more concerning to of of its employees. Not a very "professional" way of dealing with their employees.

not_sure
Mar 4, 2009 at 11:12 a.m.
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I am sure you all can understand that these are court proceedings and as such there can be no communications until the court has approved the sale. There really isn't any more information in this article than what has been disseminated through other channels. The only difference being that professional writers can communicate information better.

CB210
Mar 4, 2009 at 10:58 a.m.
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Go cabinmama!!!!

cabinmama
Mar 4, 2009 at 10:47 a.m.
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You are kidding me?! I know people who work there and they have been on pins and needles, totally stressed out waiting for word or updates. How RUDE! What is wrong with these inconsiderate people? Sad. Really sad. Management that treats people like this....I guess we're not surprised at their outcome. These are FAMILIES they are messing with. No excuses. I'm disgusted.

CB210
Mar 4, 2009 at 10:13 a.m.
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Freedom is a "great" place to work. It is the only job I have ever had where I can get important inside information about the company from the outside world.

knowitall
Mar 4, 2009 at 10:02 a.m.
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WOW! I have to find from the Gazette what's going on instead of my superiors. Know wonder we're in this mess.

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