Able Industries files for Ch. 11 bankruptcy

Guam - Once boasting itself as the largest employer of individuals with disabilities on the island, Able Industries of the Pacific has found itself in a financial predicament. First it wasn't able to pay employees, even prompting a Department of Labor investigation, and now the company has filed for bankruptcy.

"The program is in jeopardy and Able Industries is a NISH affiliate and the NISH people in the U.S. are deeply concerned about what is going on," said Johann Sobredo. That was the former Able board member's warning more than a year ago. Sobredo alleged significant mismanagement at Able Industries that resulted in employees not being paid and debts to vendors piling up.

But CEO Joaquin Leon Guerrero vehemently denied the claims, saying, "We've posted profits both ‘09 and '10, so the company is strong and the company is growing."

Almost exactly a year ago from when we interviewed Leon Guerrero, it's today a much different picture - Able has filed for Chapter 11 Bankruptcy in the District Court. It's hard to believe, considering the company in 2010 raked in more than $5.1 million and last year brought in $5.6 million. Able has more than 100 creditors and among the top 20 are $335,000 to the General Services Agency in St. Louis, Missouri; $193,000 to Calvo's Insurance Underwriters; another $166,000 to parent organization NISH; $93,000 thousand to ASC Trust; $37,000 to the Internal Revenue Service; $33,000 to Sunny Wholesale; $23,000 to Xerox; $14,000 each to Island Equipment Company, Office Depot, and Kishore Hemlani; and another $11,000 to Napa Auto Parts.

Personal property of the company includes checking accounts with less than $3,500, $2,500 worth of furniture and household goods, $1,500 worth of clothing and another grand worth of jewelry. Other creditors that are listed as holding unsecured non-priority claims include $82 dollars to a Utah Software Company, $189 to ComPacific, $1,100 to Cost-U-Less, $8,000 to Dallas Lighthouse for the Blind, $8,400 to DOCOMO Pacific, $151 to Express Signs and Graphics, $7,300 to IT&E, and $8,600 to National Office Supply, just to name a few.

In total, Able owes more than $1.3 million to various creditors - that's in addition to what's owed to its employees.

The U.S. Department of Labor has been investigating the company and an audit of the company's 2010 payroll records showed that Able failed to pay close to $600,000 in health and welfare benefits to its employees. As a result the feds garnished much of the money, through federal contracts, and the USDOL is expected to start distributing those checks in the coming weeks.

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