Recycling Inc. has ceased operations and plans to liquidate
following a failed attempt to merge with another company.
The Charlotte, N.C.-based
company, which has nearly $3 million in debt, bypassed the
traditional Chapter 7 proceedings under U.S. Bankruptcy Code
and has opted to wind down its operations in a Delaware
The state-level dissolution,
known as assignment for the benefit of creditors, is faster and
more cost effective than a federal filing, Stewart F. Grossman,
an attorney at Bostons Looney & Grossman LLP, told
AMM. The state proceeding takes about six months,
while federal filings can take 18 months.
Grossman has been appointed as
the assignee in the case, and company president Steven Gilbert
signed the documents. Gilberts other business,
Charlotte-based retail yard Gilbert Iron & Steel, is a
separate entity from Global and was not affected by the filing.
That operation remains open.
A spokesman for Global Recycling
said the company cant comment, as the matter is now in
the hands of the court. The company reported liabilities of
$2.9 million, but the asset value of cash on hand, receivables
and equipment is still being tallied.
Global Recycling, which had been
exporting copper-bearing electric motor scrap to Asia since
2004, was hit by the 2008 financial crisis, Grossman said in a
letter to investors.
Global attempted to merge with
unnamed Asian investors with a Midwest presence, but the deal
didnt come to fruition, according to the letter. The
recycler then attempted to have vendors extend its payment
terms while it sought new lenders, but no money became