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 August.
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).