PITTSBURGH A Miami metals recycler claims it was wrongly pushed into bankruptcy by its lender.
River Recycling Co. is suing Tampa, Fla.-based RREF II RB Acquisitions LLC for negligent misrepresentation, intentional misrepresentation and breach of contract, according to documents filed in a U.S. Bankruptcy Court in southern Florida.
The recycler filed for Chapter 11 bankruptcy protection in December and later converted the case to Chapter 7 liquidation (amm.com, Jan. 24).
The company, which had been in business for 22 years, claims it was making timely payments on $719,000 in mortgage and equipment notes. RREF purchased the loans from a local bank in June 2013.
Less than a month after assuming the debt, RREF informed the recycler that $44,226 was past due and needed to be satisfied within 13 days or be in default. River Recycling contends that it was current on all payments and the new lender failed to inquire from the original lender whether the payments had been made, according to the filing.
According to the documents, company co-owner Elizabeth Kono called a bank representative, who allegedly refused to discuss the error and also sent financial statements to the new lender.
RREF filed foreclosure proceedings against the recycler in November.
A status hearing on the matter will be held Sept. 3.
RREF couldnt be reached for comment.