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Emlenton Water files for bankruptcy

Air Nails in East Butler also files

A privately owned utility and an East Butler business both have filed for bankruptcy.

The Emlenton Water Co., owned by Jeff Foley, has had a difficult year. In April, the plant's processed water was found to be contaminated with cryptosporidium, a water-borne parasite that causes diarrhea in humans and animals.

The state Department of Environmental Protection found the contamination during a routine check of the water. The problem stemmed from malfunctioning filters that were originally installed in 1964.

Although Foley rebuilt the filters in September for $50,000, the company's 500 residential and commercial customers are still under a boil order while the DEP waits for the company to put standardized procedures in place, said Freda Tarbell earlier this month.

Calls to the water plant were not returned.

Jennifer Kocher, spokeswoman for the state Public Utilities Commission, said when a utility becomes "financially threatened, the PUC has a variety of tools to help other established companies take over" the one in financial trouble.

The water company's, Chapter 11 bankruptcy filing is not a surprise to the PUC, which has been watching the company for some time now. Chapter 11 allows companies to reorganize and, hopefully, continue operating.

"We have between 50 and 100 complaints about the company," Kocher said.

In the case of bankruptcy, she said the PUC makes sure the customers are not affected by power or water outages.

The other company to file for bankruptcy this month is Air Nails, owned by International Staple Machines in East Butler.

That company has about 30 employees.

No one returned messages left with Air Nails executives voice mail.

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