PenPly Delinquent on $280,000 in Utility BillsPORT ANGELES, WA -- Peninsula Plywood (PenPly) is past-due on paying the City of Port Angeles nearly $280,000 on its utility bills.

The Port Angeles City Council is in a quandary as to whether or not to waive approximately $15,000 in late payment fees, according to The Peninsula Daily News. The newspaper quoted Mayor Dan Di Guillo as opposing forgiving the fees because the city has "bent over backwards" for PenPly.

In June, the City Council voted to endorse a $500,000 grant application being submitted by PenPly to the Washington Department of Commerce. The grant provided the struggling plywood manufacturer with a cash infusion to continue operations.

PenPly reportedly had kept up with payments on its utilities and rent the past few months, but has yet to fully repay bills owed before the grant funds were issued. However, the company reportedly more than doubled production to 3 million feet and hired 30 new workers in July.

PenPly reopened the mill in March 2010. It had been dormant since being closed by Klukwan Inc. in November 2007.

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