Florida-based Creative Recycling Systems has moved to liquify its assets, court documents show.
Creative, which filed for Chapter 11 bankruptcy this September after being sued to the tune of $18.7 million, announced the decision on Dec. 16. A notice sent to potentially affected parties and obtained by E-Scrap News states an additional meeting will be held with creditors on Jan. 23.
Creditors have until April 23, the notice reads, to file a proof of claim in the case.
Gerard A. McHale Jr., the company’s trustee in the case, was unavailable for comment.
Founded by Jon Yob, Creative was once seen as a prominent player in the e-scrap space, with processing hubs in Florida, Georgia and North Carolina and collection sites throughout much of the eastern U.S. It was sold in 2012 to investment group Intersection One, which eventually went on to sue Yob for allegedly misrepresenting the value and standing of the company.
The suit was dismissed on Sept. 26 of this year and Yob provided a detailed defense of Creative to E-Scrap News, but the company remained embroiled in the separate and still-standing lawsuit filed against it by Regions Bank. The case, which alleges Creative owes nearly $18.7 million to the bank, forced the company to close all of its operations, file for bankruptcy and look for potential suitors.
While a glimmer of optimism remained for the company to find an interested party, the company’s Dec. 16 move to liquify its assets is likely a sign no deal could be reached.
In September, the company was said to have an estimated 30 million pounds of CRT glass in need of processing.
