Construction company files for bankruptcy, owes as much as $50M

Durham, NC: Mainline Contracting, a company that reported more than $80 million in revenue last year, has filed for Chapter 11 bankruptcy protection.

The company reportedly claims assets and debts in amounts between $10 million and $50 million, according to the filing that was made on Tuesday, September 15, in the U.S. Bankruptcy Court for the Eastern District of North Carolina.

Executive vice president Gary Wright told the Herald Sun that he hopes the company will emerge out of bankruptcy in the first part of next year.

"It is a Chapter 11, reorganization filing," Wright said. "We're still operating. We're still doing our projects and doing new projects."

In the filing, Mainline states it does not expect to be able to pay its unsecured creditors.

Thompson Arthur Division of Asheville-based Apac-Atlantic allegedly has the biggest claim against Mainline and says it is owed $1.8 million for subcontracting work. Ferguson Enterprises, which sells plumbing and building products, reportedly states it is owed approximately $890,000.

Mainline has reportedly disputed both claims.