POTSDAM — While the CEO of LC Drives is directing employees to contact Koch Engineering Solutions to find out about getting accrued paid time off, Koch’s involvement in the company is purely as an investor, a Koch spokesperson said.

Rob Carlton, director of Communications & Marketing, Koch Communications Marketing, told North Country This Week in an email that LC Drives CEO Russ Marvin’s description of Koch’s involvement in a recent memo to employees was a mischaracterization.

Marvin had circulated the memo last week announcing that LC Drives had lost a potential investor to carry the company forward and that the innovative electric motor developer would be dissolving.

In the memo, Marvin had directed employees to begin looking for new jobs and said they Koch would assume ownership of the company and employees should contact Koch about paid time off.

“Koch Industries is not now, and has never been in control of LC Drives Corp. Koch Engineered Solutions, LLC (“Koch”), a subsidiary of Koch Industries, Inc., is a passive minority investor in LC Drives and is also a creditor of the company,” Carlton said.

“Koch is not entitled to, nor does it plan to, take control of LC Drives. Accordingly, Koch is not responsible for obligations that LC Drives may have with respect to its current and former employees. Mr. Marvin, quoted in the article through his memo, does not speak for or represent Koch in any capacity,” Carlton said.

“It is our understanding that LC Drives is headed toward an orderly wind down and potential bankruptcy. Koch is supportive of this decision and may take certain steps to protect collateral that secures the credit extended to the Company in the past,” Carlton told North Country This Week.

View our earlier story here.