Proposed aluminium plant in Pineville faces lawsuit

<p>Creditors allege in a court filings that the companies behind a planned aluminium plant in Pineville owe more than $2 million in unpaid loans and contracts.<br /><br />Revolution Aluminum LLC, which announced plans last year to build a $1.5 billion production complex that could employ more than 1,000 people, is being sued by Acadiana Railway for nearly $800,000 for unpaid work and uncollected fees.<br /><br />Also, a petition has been filed to force Revolution Aluminum Propco LLC, which purchased the property for the proposed complex, into bankruptcy to collect loans that have not been repaid. Revolution Aluminum Propco LLC is incorporated with Revolution Aluminum LLC as its manager.<br /><br />In the bankruptcy filing, three petitioners allege that Revolution Aluminum Propco LLC, which bought the former site of International Paper's Pineville Mill in March, borrowed $1.32 million from them to secure the property, and then failed to pay it back as promised. The petition for involuntary Chapter 11 relief was filed in U.S. Bankruptcy Court, Western District of Louisiana last week.<br /><br />{googleAdsense}<br /><br />The petitioners allege that Revolution Aluminum Propco, through its principal, Roger Boggs, sought bridge financing from them to complete the $3.9 million purchase of about 1,400 acres off La. Highway 107, now named Innovation Park. The purchase took effect March 15. In exchange, the petitioners were promised repayment of the loans, bonus payments and consideration for contracts to provide work and materials needed to develop the aluminium mill.<br /><br />A sign at Innovation Park in Pineville lists Revolution Aluminum and other companies that would locate to a proposed $1.5 billion production complex that would employ more than 1,000 people. <br /><br />Petitioners expected to be repaid within 60 to 90 days of the sale closing.<br /><br />While most Chapter 11 bankruptcies are voluntary, creditors can seek to force an involuntary bankruptcy to recoup money owed.<br /><br />Alexandria attorney Bradley Drell, who is representing the petitioners in the bankruptcy filing, filed an emergency motion Tuesday to prevent Revolution Aluminum Propco LLC from borrowing further against the property or transferring it to a third party until the bankruptcy petition is resolved.<br /><br />"What we're asking the court to do is put some restrictions in place so they can't further encumber the property," said Drell, from the Alexandria firm Gold, Weems, Bruser, Sues and Rundell.<br /><br />Last month, Acadiana Railway filed suit against Revolution Aluminum LLC, seeking more than $798,000.<br /><br />According to the suit, Acadiana Railway completed $648,000 of work constructing and improving rail access to Innovation Park on July 15. The company is seeking to recoup that money, plus $150,000 for three months of rail car switching fees it alleges Revolution Aluminum has not paid.</p>