PITTSBURGH A judge has granted a banks emergency request to add security at a Gary, Ind., scrap metal processing operation after the scrapyards owner allegedly threatened to damage the auto shredder.
Bank of America NA and other financing parties have been trying to repossess equipment from Summit Inc., also known as Alpha Scrap Inc., which allegedly has been in default on its loan since 2009 (amm.com, Sept. 16, 2011). The financiers claim that owner Peter Coulopoulos installed the shredder but failed to pay the loans on the equipment.
The owner is alleged to have told two bank officers that he would damage the equipment, according to documents filed in U.S. District Court in Indiana. "Coulopoulos made a series of threats, including specifically his threat to torch the shredder leased to Summit, before he would allow plaintiffs to gain control of it," the court papers said.
Judge Andrew P. Rodovich authorized the appointed limited receiver to provide supervised security at the site, according to court documents.
Bank of America said it had no way to protect the shredder, which is still operating, as its request for repossession works its way through the court system. The banks intention is to retrieve the Wendt model 82-104 heavy shredding system and sell it to recoup its losses. It reportedly has a liquidation value of $7.2 million.
A status conference is scheduled for March 7, when the judge will be updated on security measures and hear the limited receivers recommendations for ongoing security.
Coulopoulos could not be reached for comment.