Could Jet Lawsuit Ground Endicott Interconnect?
4/25/2013 (Updated 6:41:51 PM)(Source: Jason Weinstein)
A breach-of-contract lawsuit over Endicott Interconnect's leasing of a corporate jet from Canal Air, LLC has shed light on the company.
In an April 8th declaration in response to the suit James McNamara, who resigned as EI's CEO four days later, approximated the company's workforce at 605 employees.
He stated the company has been restructuring it's financing to produce positive cash flow and allow it to remain in business. McNamara also declared if Canal Air won it's suit, which is asking for damages of 11-and-a-half-million dollars plus interest, the result would likely be a bankruptcy filing for Endicott Interconnect.
This is in contrast to the high hopes in the Summer of 2002. That's when a group of local investors began the company by purchasing much of what was formerly the assets of IBM in Endicott. At the time, former Governor George Pataki said the deal meant 4,000 jobs would remain at the site, including IBM.
One of the catalysts of that deal, State Senator Tom Libous, said he's taken aback at reports only about 600 employees remain at EI.
"This was pretty shocking to me. The fact that they're down to 600 was news," said Libous.
But Libous still says the $15 million in tax credits was still a good deal for the state. Had the state not made the deal, IBM would have pulled out of Endicott completely and all the jobs would have been gone back in 2002, according to Libous.
And the deal also included the Huron Campus, which is home to other businesses such as BAE Systems, which recently received a 10-year, 40-million dollar tax-break deal which is keeping 1,300 employees in the area.
"For ten years the taxpayer money kept full employment. They kept that facility, that IBM facility that employs other people, again EI is not the only place their," said Libous.
According to a March filing in U-S District Court, there is a conference on the corporate jet lawsuit between Canal Air and Endicott Interconnect scheduled for July 5th in Binghamton.
****In Broome County, Jason Weinstein, Fox 40 HD News****
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