New Century Fabricators To Close Friday
New Century Fabricators of New Iberia filed for bankruptcy late last month and will close at the end of this week.
According to our news partners at KATC the court issued a restraining order preventing owner Jim Castille and his son Brennan Castille from accessing New Century's accounts. First Capital, New Century's largest lender claims the company overstated its company worth to “camouflage the funding of covert payments to or for the benefit of members of the Castille family under the “New Centruy Shop Improvements” account. It is alleged that $150,000 was billed for personal expenses.
In addition Capital One says New Century owes about $3.7 million above what it actually was eligible to borrow.
Capital One also alleges:
- New Century stated their sales were double the actual amount.
- New Century stated it's total value at nearly $4 million while being $500,000 in debt.
A court-appointed executive had to ask permission to pay the 300 employees but the budget can only handle payments through this Friday, June 13.