By KEN de la BASTIDE, Kokomo Tribune enterprise editor
ken.delabastide@kokomotribune.com
Just like an employee who worked for a week and then was told the company went out of business, contractors working on the transmission plant in Tipton County also have not been paid for work performed.
Getrag Transmission LLC filed for bankruptcy protection in November and canceled completion of the project. Contractors have not received payments since July.
Five companies in Grant and Howard counties who are owed more than $13.8 million for work performed are now struggling to stay in business.
They were not paid for work done in August, September and October.
Prior to that time, contractors were paid by construction manager Walbridge Construction, which was receiving funding from Getrag.
The local companies subcontracted through Walbridge to work on the $530 million transmission plant, a joint venture between Chrysler LLC and Getrag Transmission LLC.
In October, Chrysler filed a lawsuit against Getrag, citing its inability to obtain financing to complete the work.
At the time of the project's cancellation, James Miller with BMD Contractors had 100 people working 60 hours a week at the site. They were all hands on deck because of a change in the production schedule that required work to be completed by Nov. 1.
"We never dreamed they would have a project that they didn't have the money committed for," he said.
Rick Smith, with Stephens Machine, said there was never an indication funding was a problem.
"The state should have never let the project get started," he said. "Where is the governor and our representatives?"
Junior Zimmerman, with C&Z Construction, refers to Oct. 17, 2008 - the day the job was shut down - as "Black Friday."
"They were already 17 days late in making the payment," he said. "Walbridge was promised the money on that day. When the money didn't come, they shut down the job."
Jerry Albrecht, president of Moorehead Electric, said they were told to put all the material inside the building. It's still there, he said.
"There's nothing we can do about it," Albrecht said of the materials suppliers have billed them for that's locked behind the chain link fence at the Getrag site.
The contractors say they are now facing a credit squeeze and can't get the necessary bonding to bid on public projects.
The companies have been forced to lay off the majority of their employees.
Mark Graves, owner of Graves Sheet Metal, said a part of the contracts was the installation of equipment at the Getrag plant.
"It was an aggressive work schedule," Graves said. "We backed away from bidding on other contracts because of the workload."
When asked how much his company is owed, Mike Imbler, vice president of Mid-States Painting, rattled off the figure $389,420.35.
He said the contractors are now having to purchase supplies by paying cash because vendors won't provide them with credit.
"We're hopeful of getting the money," Imbler said of the liens the contractors filed in bankruptcy court. "Everyone is on the bubble."
The Indiana House included an amendment in a bill for the Indiana Economic Development Corp. to provide direct loans to companies that worked on the Getrag plant.
"There is no money included in the budget right now," Albrecht said. "It would be a maximum $500,000 loan per contractor. There is no vehicle for the state to lend money directly to private corporations."
Mitch Robb, secretary of the Indiana Department of Commerce, said Friday a lot hinges on the outcome of what happens with Chrysler.
He said there is some indication that if Chrysler and Italian automaker Fiat reach an agreement, there is a chance the Getrag dual clutch transmission would be utilized by Fiat.
Robb said state officials tried to get Indiana's congressional delegation to tie in future federal loans to Chrysler to connect it to the Getrag issue.
"If we get some sense that there is a future out there," he said of Chrysler, "we may be willing to provide some loan guarantees ... if there is some belief the loans will be repaid."
State Sen. Jim Buck, R-21st District, said he is optimistic some relief will be provided to the contractors.
"We're working with the [Indiana Economic Development Corp.] and the House and Senate toward that end," Buck said. "The state acknowledges some culpability because it recommended the project."
Buck said the intent is to provide a loan to get some of the contractors back up and running.
"It will probably go to a conference committee," Buck said of the legislative process. "We are keeping the language alive."
Graves said the contractors could receive 80 percent to 90 percent of what they are owed if the Getrag building is sold.
"They can't market the building because of the bankruptcy," he said. "If there is a buyer, there is the belief the court will release the building."
Albrecht said the companies had to pass a quality process to get work for Chrysler and Walbridge Construction.
"You're invited to bid," he said. "These are skilled workers and the best contractors in the area."
Miller said the contractors are not upset with Chrysler, but with Getrag.
"Getrag knew in July that Chrysler was not giving them any more money," he said. "They kept us working for three months, knowing we would not be paid."