PITTSBURGH Two recyclers
are facing bankruptcy proceedings after suffering financial
difficulties in recent months.
United Salvage & Auto USA
Inc. of Halifax, N.C., has filed for Chapter 11 bankruptcy
protection, while Sipac Recycling LLC of Dallas is facing an
involuntary Chapter 7 dissolution by its creditors.
United Salvage, which services
eastern North Carolina and Virginia, lists assets of $3,275,950
and liabilities of $12,980,746, according to documents filed in
U.S. Bankruptcy Court for North Carolinas Eastern
District. Its debts include more than $11 million to financial
institutions, $206,520 to Erie, Pa.-based Eriez Manufacturing
Co. and $55,211 to St. Louis-based American Pulverizer Co.
It is the recyclers second
Chapter 11 filing. Court records indicate that it made a
similar filing in October 1997; it had a reorganization plan in
place by February 1998 and the case was terminated that
United Salvage could not be
reached for comment.
In Texas, Sipac, Foxhall
International LLC, Lonestar Foxhall LLC and individuals Prateek
Desai, Chirag Gandhi, Imran Khan and Suleman Sohani are facing
Chapter 7 bankruptcy, although the company has asked the U.S.
Bankruptcy Court for Texas Northern District to convert
the case to Chapter 11 so that it can work out an agreement
with creditors, which include Fort Worth-based Texas Industrial
Scrap Iron & Metal Inc.
Sipac, its affiliates and its
attorney could not be reached for comment.
Sipac made headlines recently
when it was sued by two separate companies for allegedly
failing to return export containers to their owners
(AMM, Dec. 20 and March 8).