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Insolvent Ontario recycler’s shredder sold

Keywords: Tags  auto shredder, Scrapmen & Boparai Trading, Rantel Boparai, Canadian Bankruptcy and Insolvency Act, Great Bay Development, Lisa Gordon

PITTSBURGH — Insolvent Ontario metals recycler Scrapmen & Boparai Trading Co.’s auto shredder and other assets have been sold for a mere Canadian $100,000 ($93,262).

The Ontario Superior Court of Justice approved the sale of the shredder, the scale and the inventory to London, Ontario-based Great Bay Development Corp., which owns one of the recycler’s two leased facilities.

Great Bay agreed to waive C$250,000 ($233,142) in rental fees for the property during the bankruptcy proceedings, bringing the value of the transaction to C$350,000 ($326,409). The shredder had a book value of C$10 million in 2012.

Court documents don’t indicate the amount of scrap included in the deal, but local players estimated the facility held 12,000 tons of processed scrap worth C$4 million ($3.73 million).

Five offers were made to the court-appointed receiver, but most were on a conditional basis.

The company was placed into receivership under the Canadian Bankruptcy and Insolvency Act for defaulting on C$17 million ($15.9 million) in loans (, Jan. 15).

Rantel Boparai, owner of the company, reportedly fled the country and defaulted on millions of dollars in loans shortly after a routine audit for additional loans alerted the bank to financial irregularities. The company reported sales of C$64.6 million between January and September 2013 but only deposited C$7.6 million during this time, including just C$3,964 in September.

Boparai hasn’t returned to Canada, according to the court documents.

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