McKENZIE BANKRUPTCY HITS REGIONAL COUNTIES - Company Claims $356,000 In Liabilities

(07/11/2002)
The bankruptcy of McKenzie Engineering in Summersville has affected several regional counties that contracted with the firm. Wood County filed a complaint last year against Doug McKenzie, claiming losses and damages on a mapping project for the assessor.

Calhoun contracted with McKenzie to provide services for E-911 mapping and addressing, which included the installation of equipment. The Commission attempted to withhold money on a maintenance agreement earlier this year, but McKenzie said the contract was already in use for the fiscal year.

A meeting of creditors will be in the federal courthouse in Beckley on August 14. The Chapter 7 bankruptcy claims about $356,000 in liabilities and $52,000 in assets.

Wood County Prosecutor Ginny Conley said the county is filing a suit claiming breach of contract, an amount of $253,990.

Pleasant's County Commissioner Mark Bailey said he was scheduled to meet with McKenzie this week regarding work in that county. He indicated problems existed with McKenzie over a year ago and a lawsuit had been discussed. Pleasant's county had spent about $53,000 with the company.

McKenzie appeared before a Calhoun Commission meeting about a year ago, explaining his responsibilities. He was asked why he did not meet his own timelines. After being challenged for non-performance and failing to return phone calls, McKenzie stated he was going to bring a lawsuit against the county because payment was being withheld.