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Costs arising from these and other changes, including the costs of delays in completion, were charged to Woody's account. Project overrun finally became reality when actual expenditures exceeded the budget and it was apparent to everyone that the project was at best only 85% complete. Cashman was forced to scramble for an additional line of credit in project financing at prime plus 2-1/2%, an excessive premium given Woody's credit rating. From then on, Woody's were in a fire fighting mode and their ability to control the project diminished rapidly. They found themselves throwing money at every problem in an effort to get the plant operational.

During Woody═s period of plant upgrading, construction activity in the region fell dramatically with general demand for Woody═s products falling similarly. Even though Sharpe launched an expensive marketing effort to try to regain customer loyalty, it had only a marginal effect.

Startup  Startup

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