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National City Clarifies Role in Sterling China Shutdown
WELLSVILLE, Ohio -- Reacting to "inaccuracies" reported in Columbiana County's daily newspapers regarding its foreclosure on Sterling China USA LLC Monday, National City Bank "is compelled to respond to the statements of others," a bank spokesman said Wednesday afternoon.National City Bank, based in Cleveland, did not interfere in the transfer of the original Sterling China Co.'s pension plan records to the successor trustee, Park National Bank, the spokesman said. Sterling China Co. ended its operations in December 2003 and Sterling China USA LLC subsequently agreed to purchase its assets subject to National City Bank's lien interests."National City has transferred plan assets and plan records [of the original Sterling's retirees] to Park National Bank," National City's spokesman said. "Further, to the best of our knowledge, our bank has not received further requests for these records, either from Sterling China USA or from the new trustee."The Morning Journal, Lisbon, reported Thursday, "Pension members past and present of troubled Sterling China USA plan to picket outside various National City Bank buildings today in an effort to resolve an ongoing dispute concerning pension records. Bill Berry, manager of Sterling China USA, said the bank 'continues to stonewall the transfer of all pension records to the new trustee, Park Bank."National City was not the administrator of the plan before the role of trustee was transferred to Park Bank, the National City spokesman said. Indeed, in an effort to help beneficiaries of the trust/pension, last April National City and Local 24 of the Glass, Molders, Pottery. Plastics & Allied Workers International Union joined forces, going to federal court to compel Sterling China Co. to have the administrator begin distributions under the plan. They charged that the former Sterling China and its principals "breached their fiduciary duties and failed to make contributions under the plan."Meantime, the pottery here that was operated by Sterling China USA remained padlocked following Columbiana County Common Pleas Judge Ashley Pike's denying Sterling China USA's request Tuesday for a temporary restraining order to reopen the plant. More than 100 employees are affected. National City said Tuesday that David Bruno, minority owner in Sterling China USA, failed to pay the $750,000 earlier agreed upon -- the original due date was Dec. 31, 2004 -- so the plant would remain open and could continue to operate. The Morning Journal reported yesterday that an attorney for National City offered to settle for a payment of $400,000 by March 15 and collect the balance at the sheriff's foreclosure sale April 15. Bruno declined the bank's offer, its attorney said.In court, Pike noted the bank was well within its rights to take the action it did in the wake of Bruno's refusal or inability to produce the funds. Sterling China USA was to receive a combination of state loans and grants that would have allowed it to stay up and running. The assets remain scheduled to be sold at a sheriff's auction April 15. "