Publishers Mislead by Central Plains Book Manfacturing

When Central Plains Book Manufacturing was about to declare bankruptcy, they failed to alert their customers to this fact and indeed continued to try to take on new customers. (In addition, we placed a call to Central Plains after they were already in bankruptcy and they were happy to try to take a new order from us.)

This resulted in major problems for Central Plains Book Manufacturing customers when Central Plains failed to fulfill their book orders.

The following account is an example of one such negative experience. It comes from Eliza Earsman (http://www.elizaearsman.com/4.html):

*** begin quote ***

Days of Elijah Release Date Delayed:

With a Release Date of 1 September 2007,
'DAYS OF ELIJAH' was accepted for printing on
24 July 2007
by CENTRAL PLAINS BOOK MANUFACTURING in Winfield, Kansas, i.e.

"We will proceed with your job."

Becky Pate
Vice President of Acquisitions/Sales
Central Plains Book Mfg.
22234 C St., Strother Field
Winfield, KS 67156
bpate@centralplainsbook.com
www.centralplainsbook.com
7/24/07

On 5 August 2007 this email was received from the same Becky Pate:

"Central Plains has found itself in a terrible situation with the IRS and we have been forced to file for Chapter 11 (Bankruptcy/protection against creditors!) in order to try to salvage our company.

Right now all work in process has been "frozen" by the court."

Becky Pate
Vice President of Acquisitions/Sales
Central Plains Book Mfg.
22234 C St., Strother Field
Winfield, KS 67156
877-278-2726 toll free
620-221-4762 fax
bpate@centralplainsbook.com
www.centralplainsbook.com


CPBM didn't find itself in a 'terrible situation with the IRS' overnight! So say I and many!

*** end of quote ***

We agree. You don't owe the IRS $300,000 in back taxes overnight. They knew they were in major trouble and selfishly failed to disclose this information to their customers. Pathetic.

More Deception from Central Plains Book Manufacturing

Recently you may have seen the following statement on the Central Plains Book Manufacturing website:

"We are pleased to announce Central Plains Book has joined Sun Graphics, LLC based in Parsons, Kansas. Sun Graphics has a 50 year tradition which started in color separation and evolved into a cutting edge commercial printer with broad capabilities."

"We evaluated numerous opportunities and selected Sun Graphics for a variety of reasons, none more important than their commitment to quality and service, which is a core value we share."

Now the truth:

1. Central Plains Book Manufacturing went bankrupt.
2. They couldn't make their loan payments to the bank.
3. They owed the IRS $300,000 in back taxes.
4. They were sending out defective product.
5. All of their equipment was sold at public auction.

They did not "evaluate numerous opportunities." They were looked at by several companies who might have bought the company in bankruptcy. None did. Sun Graphic bought a portion of their equipment AT PUBLIC AUCTION.

Having someone buy your equipment at public auction after your company is in bankruptcy is a world of difference from "evaluating opportunities" and "joining" Sun Graphics like it is some type of partnership or business merger.

Maybe "CEO" Gunter Hansen isn't clear on the difference. Then again, he wasn't too clear on the difference between defective and non-defective books, either.

In short, these are misleading and deceptive statements by Central Plains Book Manufacturing.

All Central Plains Book Mgf. Equipment Sold at Auction

All Central Plains Book Manufacturing equipment was sold at auction on Wednesday, October 24, 2007 at 10am by Duckwall & Co., Inc. (auctioneers).

Central Plains Book Manufacturing

Central Plains Book Manufacturing still in limbo

By FOSS FARRAR, Traveler Staff Writer

A counter-offer by Union State Bank to a potential buyer of Central Plains Book Manufacturing is unacceptable, the potential Wichita buyer said Friday.

Jeff Johnson, owner of Color Impressions, a Wichita printing company, confirmed a report that Union State Bank had offered a 10-year, $1 million loan for the purchase.

Union State is the largest secured creditor of Central Plains in a bankruptcy case.

Johnson said he remains interested in buying Central Plains Book Manufacturing but that he wants a deal to come together quickly. Johnson would form a separate LLC if he were to buy the company, with a partner, Tom Galbraith, also of Wichita.

"Time is of the essence," he said. "Every day that (Central Plains Book Manufacturing is) closed, you lose value on your company."

Central Plains Book Manufacturing ceased operations and laid off its 70 workers on Aug. 1, two days after the Strother Field company filed for Chapter 11. The case was filed in the U.S. Bankruptcy Court, District of Kansas, in Wichita.

Union State Bank was trying to set up a conference call with the prospective buyer, Justin Sparks, vice president and chief loan officer of the bank, said late Friday.

"Nothing is imminent," Sparks said of a potential deal to sell the company. "I'm not optimistic, but I'm not pessimistic."

Sparks and Johnson acknowledged that other parties in the bankruptcy case must be satisfied for any deal to go through. One of them is the Internal Revenue Service, which holds a $300,000 lien on Central Plains assets for back taxes.

"The IRS has first lien on cash and receivables," said Ed Nazar, who is representing Central Plains in the bankruptcy. "The bank has a lien on personal property and equipment."

Others that must agree to any deal are the Small Business Administration and a state agency that provided funding to Central Plains, Nazar said.

Getting all these entities together on a deal is like getting satellites aligned in space, he said. "They come together and they drift apart," he said.

Nazar said he believes Union State is working diligently to try to make a deal but the bank "needs to run the traps with its constituency, the SBA and the state."

"We need patience and something can come through," he said.

Johnson indicated he is starting to run out of patience. He said he made his first offer to buy Central Plains on Aug. 9, and it took the bank until Friday to respond.

"Every day is a new day in this business," he said. "You have to keep the customers coming in and the sales coming in and the books going out. Every day that you're closed, you lose value on your company."

Johnson said he "knows for a fact" that several former Central Plains employees have taken other jobs.

"In order for me to resurrect the business and equipment, it's going to be tough," he said. "It's fast becoming less and less valuable."

Gunter Hansen, the general manager of Central Plains Book Manufacturing, said Friday he holds out hope that a deal on the sale can be made, for the sake of the company's 70 employees.

Including the years in business of Gilliland Printing in Arkansas City -- a predecessor of Central Plains Book Maufacturing -- Cowley County has had "60 years of book manufacturing; it should not come to a close," Hansen said.

Central Plains Book Manufacturing sued for Employment Discrimination

Bay v. Wheatfield Investments, Inc. (d/b/a/ Central Plains Book Manufacturing)

Case Number: 6:2006cv01186
Filed: June 26, 2006

Court: Kansas District Court
Office: Wichita Office [ Court Info ]
Presiding Judge: District Judge J. Thomas Marten
Referring Judge: Magistrate Donald W. Bostwick

Nature of Suit: Torts - Injury - Other Personal Injury
Cause: 28:1332 Diversity-Employment Discrimination
Jury Demanded By: Plaintiff

Central Plains Book Manufacturing Sued for Violation of Interstate Commerce Act

March 28, 2007

Central Plains Book Manufacturing sued by Con-Way Transportation Services, Inc. for violations of the Interstate Commerce Act.

Con-Way Transportation Services, Inc. v. Wheatfield Investments, Inc. (d/b/a/ Central Plains Book Manufacturing)
Plaintiff: Con-Way Transportation Services, Inc.
Defendant: Wheatfield Investments, Inc.

Case Number: 2:2007cv02132
Filed: March 28, 2007

Court: Kansas District Court
Office: Kansas City Office [ Court Info ]
County: XX US, Outside State
Presiding Judge: Chief Judge John W. Lungstrum
Referring Judge: Magistrate Judge David J. Waxse

Nature of Suit: Other Statutes - Commercial/ICC Rates/etc.
Cause: 49:11702(a)(4) Violations of Interstate Commerce A
Jurisdiction: Federal Question
Jury Demanded By: None

Central Plains Book Manufacturing Declares Bankruptcy

Given their history, you would have to be a complete idiot to buy this company!

CENTRAL PLAINS FILES CHAPTER 11

August 8, 2007

By JEANNE RICHARDSON, Reporter

The Winfield Daily Courier

Wheatfield Investments Inc., also known as Central Plains Book Manufacturing, filed for relief under Chapter 11 of the bankruptcy code in United States Bankruptcy Court in Wichita on July 30. They are being represented by Redmond & Nazar, LLP in Wichita.

"I wish we weren't in this position," said Günter Hansen, Central Plains general manager and CEO, this morning. "We hope that someone will step in quickly and take over the business. Our customers are very supportive, but we need to move quickly."

Operations at the Strother Field plant have ceased.

A hearing will be held on Sept. 13.

Central Plains began production in July 1999, continuing the work of the former Gilliland Printing in Arkansas City. Central Plains was fully operational by the end of September 1999. It operated one shift and employed 52 people, 48 of whom came directly from Gilliland. They have been producing books as Central Plains for the last eight years.

Central Plains employed about 70 people.


From The Arkansas City Traveler:

PRINTER FILES FOR BANKRUPTCY

By FOSS FARRAR, Traveler Staff Writer

Central Plains Book Manufacturing filed for Chapter 11 bankruptcy last week and the company's 70 workers have been laid off.

The last day of production at Central Plains' Strother Field plant was last Wednesday, said Gunter Hansen, the company's general manager.

Central Plains filed for Chapter 11 in the U.S. Bankruptcy Court District of Kansas, in Wichita, on July 30, a court clerk there said. A first meeting of creditors was scheduled for Aug. 24 at the district courthouse in Wichita.

Hansen said today there are two buyers interested in purchasing the company, and he hopes the plant will be operating again soon. One of the potential buyers is from Wichita; the other is from St. Louis.

"I would do anything I can to make sure the company and employees stay here," Hansen said.

He said Central Plains now has three-quarters of a million dollars worth of orders to complete for its customers. So far, customers have been patient with the company's situation, he said, and Central Plains has "good rapport" with them.

Hansen said he was "blindsided" by the company's financial troubles as were his employees. He organized the company in 1999 after Gilliland's Printing in downtown Arkansas City closed...

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Central Plains Book Manufacturing

Central Plains Book Manufacturing