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 recyclers 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 dont 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 (amm.com, 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 hasnt returned to Canada, according to the court documents.