By Kirk Johannesen, The Republic
johannesen@therepublic
Companies that provide tools, materials or services to Columbus Components Group are owed hundreds of thousands of dollars, and five have resorted to legal action to recoup what is unpaid.
Some leaders of those business worry that they never will receive the money, because CCG plans to lay off 135 by Thursday, and company officials have expressed the possibility of closing the plant.
CCG owes Hope-based Deckard Tool & Engineering $146,537.50, according to Deckard invoices. Of that amount, $84,519 is more than a year overdue.
Three companies have filed lawsuits against CCG, and two have filed liens on CCG's property.
Owed
Deckard Tool & Engineering invoices show the oldest bill dating to Oct. 19, 2007, for a $35,900 job that included reworking a plasma welder. The overall total owed includes bills for seven projects of $8,000 or more, plus $12,000 in late fees.
About a month ago, CCG asked Deckard Tool to perform another project, owner Mike Deckard said, so he told CCG he'd need $25,000 up front before work would begin. None has been paid, he said.
Deckard said he believes the unpaid money contributed to his bank cutting his available operating capital.
Deckard said he is waiting to see what happens before determining whether to take legal action. The announced layoffs and the possibility of closure have him concerned.
"CCG is going to have a heck of a footprint in this county doing what they are doing. It's going to hurt people," Deckard said.
CCG's list of unpaid vendors also includes Columbus Security Inc.
The company provided security, including night watchmen, for CCG, but quit doing so after invoices for December, January and February went unpaid, said Tom Benson, president of Columbus Security.
The unpaid bills, along with the slumping economy, contributed to Benson cutting nine employees.
Legal actions
Some companies are tired of waiting on CCG to pay the money owed, so they have resorted to legal means to recover it:
Columbus Industrial Electric filed suit March 27 seeking $20,175.87, plus interest and attorneys' fees. The suit lists more than 40 charges to CCG that have not been paid, ranging from $24.28 to nearly $4,000. The oldest bill dates to Aug. 1.
Columbus Industrial Electric continues to do business with CCG, but on a cash-on-demand basis, said CIE owner Steve Deppe.
Excel Tool of Seymour filed suit March 12 and seeks $11,000 plus interest for services performed.
Realize Inc. of Noblesville seeks $5,180.89 plus interests and court costs, according to a suit filed March 12.
Two liens have been filed on CCG's property:
Baker Mechanical Services of Indianapolis seeks $35,733.48, according to a document filed March 11. The company has not been paid for installation of an aerator tank, and work on a boiler and water line performed in January, according to Anita Brenton, Baker Mechanical's office manager.
Columbus Chem-Dry seeks $13,405.96 for labor and materials for remediation of water damage. The lien was filed March 27.
Bartholomew County court records also show that CCG had two suits filed by the state seeking unpaid taxes. One from 2007 sought $130.67 for a hazardous chemical fee, and another from 2008 sought $11,016.61 for withholdings. Both amounts were paid June 6.
Plan B for repayment
Product Engineering Company builds sheet metal stamping tools for CCG, and has had a relationship with the company back to the 1940s or '50s when it was Arvin Industries, said President and co-owner Jim Eversole.
However, CCG has had problems making payments on and off since 2004, he said. When CCG began missing payments on projects more recently, PECO stopped work.
PECO is owed a large amount, Eversole said, although an exact figure was not provided.
CCG has told PECO it does not have the money to pay its overdue bills, Eversole said.
"We haven't had nearly as good a relationship, definitely not as good as with Arvin," Eversole said.
The end users of CCG's products, including Cummins Inc., are in great need of the tools, Eversole said, so some have stepped in to help. Eversole said he hopes to recover the money from end users instead of CCG.
Any work CCG requests now from PECO is performed on a cash-on-demand basis, Eversole said.
CCG's payments to B B&H Tool Inc. of Columbus began falling off in October, according to co-owner and president Lonnie Deckard.
CCG owes a large amount of money, Deckard said, although he declined to name the amount.
"It's rough. We're struggling," Deckard said.
Deckard's company has been doing business with CCG as far back as 1979. It makes dies, gauges and fixtures for CCG.
Deckard said he has taken loans to cover expenses and laid off two employees.
Deckard said he has sought advice from an attorney but has not yet taken legal action.
He said he hopes to recover the money from companies that received the products from CCG.
Attempts to negotiate repayment by CCG have been unsuccessful, he said.
"They say they have no money. Every time they have no money," Deckard said.
Deckard said he does not understand how CCG has stayed open since last October if it has no money.
Messages left for CCG President Rick Holmes and the company's human resources department were not returned, and repeated attempts to talk to CCG management have been unsuccessful.