|Michael F. Easley, Governor
Buck Lattimore, Chairman
Thomas J. Bolch, Commissioner
Laura K. Mavretic, Commissioner
Renée C. Riggsbee, Commissioner
Christopher Scott, Commissioner
Dianne C. Sellers, Commissioner
TO: All Interested Parties
FROM: Chairman Buck Lattimore
DATE: November 19, 2002
RE: Polymer Group, Inc. and Its Subsidiaries, Including Dominion Yarn
Inc. and its subsidiaries filed a petition in bankruptcy in the United States
Bankruptcy Court for the District of South Carolina. The following is our
current understanding of the situation.
Dominion Yarn Corporation was licensed to self-insure in the State of
North Carolina for the period of August 28, 1979 through July 7, 1997. Dominion
Yarn was a subsidiary of Dominion Textile, Inc. Dominion Yarn ceased to exist in
July 1997, but the parent company, Dominion Textile, retained Dominion Yarn’s
liabilities for workers’ compensation self-insurance.
Polymer Group acquired Dominion Yarn during the latter part of 1997,
assuming Dominion Textile’s obligations for Dominion Yarn’s workers’
compensation claims in North Carolina. Polymer Group’s bankruptcy petition
constitutes insolvency under the Self-Insured Guaranty Act. N.C. Gen. Stat. §97-135.
The best information available indicates that a limited number of Dominion Yarn
workers’ compensation claims exist.
The North Carolina Self-Insurance Guaranty Association is liable for “covered” claims for the period of self-insurance of Dominion Yarn. All claims for Dominion Yarn should be directed to:
|Ms. Cathy R. Stuart
Stuart Law Firm, PLLC
4101 Lake Boone Trail
Raleigh, North Carolina 27607
(919) 787-6050, Fax: (919) 787-9988
Pursuant to N.C. Gen. Stat §97-141 the NCSIGA has a 60 day stay for all “covered” claims in order to afford the NCSIGA an opportunity to investigate pending claims. The statute specifically provides that the stay is subject to the NCSIGA paying “weekly compensation for incapacity . . . whenever time periods or proceedings affecting the payment of weekly compensation are stayed.” Chief Deputy Commissioner Gheen’s Order staying proceedings before the Deputy Commissioner Section is available on the Industrial Commission’s website.
Polymer Group secured commercial workers’ compensation insurance. Claimants with workers’ compensation claims involving Polymer Group should experience no disruption in their claims, as the stay provisions of N.C. Gen. Stat §97-141 are not applicable to the non-Dominion Yarn claims of Polymer Group.
concerns regarding Polymer/Dominion Yarn claims should be directed to: Stephen
T. Gheen, Chief Deputy Commissioner, 919-807-2540 or firstname.lastname@example.org.
Due to the volume of inquiries, email communication is requested if possible,
though not required.
The Industrial Commission website (www.comp.state.nc.us) will be updated as needed with additional information.
SeeChief Deputy Commissioner Gheen’s Order Staying Proceedings Before the Deputy Commissioner Section