Plastics Firm Files Chapter 11: Olson Industries...

Plastics Firm Files Chapter 11: Olson Industries in Sherman Oaks said its Dolco packaging Corp. subsidiary, which makes plastic packages used by fast-food chains and other firms, filed in Los Angeles for protection from creditors under Chapter 11 ofthe U.S. Bankruptcy Code. The company cited cash shortages caused by the need to service a large debt, the high cost of resin used in packages it makes and money spent on the conversion of its plants to meet environmental concerns over the use of chlorofluorcarbons, which are believed to seriously damage Earth’s ozone layer. The company said Dolco lost $220,000 on sales of $18.8 million in the first quarter of 1989. All of Olson’s operations are conducted through Dolco.