No chance for Celotex

Bank of America — which argued it is so vital to America’s future, it couldn’t be allowed to falter — has forced another mega-corporation to fail.

Celotex, which has a plant in Lisbon Falls, was forced to liquidate after Bank of America refused to accept a corporate restructuring plan, which included the resignation of Celotex CEO Jim Knight, to recoup its investment.

Bank of America is the largest bank in the United States.

Celotex was the largest fiberboard manufacturer in the world.

Bank of America received $45 billion under the government’s bank bailout program, including $20 million used to acquire Merrill Lynch.

Celotex gets nothing. No time. No money.

This makes one wonder why a bank would squash a manufacturer that employed 250 Americans, including 50 Mainers, and had started reorganizing under Chapter 11 protection just two months ago. Plenty of large American firms have operated for years under Chapter 11 protection, eventually emerging from that protection to employ thousands.

Bank of America didn’t give Celotex that chance.

The big bank has been ballyhooing a new promise to pay back its bailout funds by 2010.

We wish it would have paid some forward, instead.

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