Bankruptcies

Just saw another ewaste company (Zloop) filed Chapter 11. $25MM+/- assets, $32MM liabilities. Similar to Creative Recycling ($18MM owed to Regions Bank alone). The Creative Chapter 11 was converted to a 7 (liquidation) as I understand it. Creative is the one also that has millions of pounds of CRT glass stored in various states. That's going to be a mess for someone.

Those debts are big dollars. These huge loans carry huge payments, of course, that are due and payable regardless of what material prices do.

In chaos comes opportunity, I suppose, but I hate to see companies fold. Our business (scrap, whether ewaste or metal) is an interesting barometer of the world economy. We're on the front lines.

Well said. There are plenty of opportunities out there to make money, even in businesses that appear to be "down". Creative was not only "creative" in their field of work, but evidently in their management and bookkeeping. Working hard and with focus are big indicators of success, along with having a good business plan. Know your market, reach your market, service your market...3 key ingredients.

I have to wonder if those companies were management heavy, meaning their upper echelon got paid in the millions salary while the worker in the yard got close to minimum?? Happens a lot and that kind of stuff is kept hush -hush.

I'd have to agree with Mech. Look at Metalico. Been loosing millions every quarter for the past year or year and a half, yet management still continues to get mid 6 figure salaries.

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Originally Posted by Mechanic688

I have to wonder if those companies were management heavy, meaning their upper echelon got paid in the millions salary while the worker in the yard got close to minimum?? Happens a lot and that kind of stuff is kept hush -hush.

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great insight.......that is a large problem with these companies......to many chiefs and not enough indians

Running a company, or part of company, as a owner, manager at any level, must be done for the greater good of all concerned. Companies big and small, providing goods and services, in every type of task there is, have to be ran by a strong commitment to the values that guide them. All companies (every person too) have to set and meet goals, those core values, are the real "tools" that insure the best outcome consistently for the greater good of all.

Way to many at the "top", have concern for their personal entitlement. A companies core values and a individual person's core values, really come down to: What's right? and What's Wrong? None of us have a problem finding examples of the lack of values today. Should a manager make twelve times more money than his highest paid employee? Should a corporation have a annual profit of greater than $17 billion dollars (profit), yet 40% of their workforce on some type of public assistance? Do you think these two example are companies with good core values? How would you feel working for that company?

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Originally Posted by mthomasdev

I'd have to agree with Mech. Look at Metalico. Been loosing millions every quarter for the past year or year and a half, yet management still continues to get mid 6 figure salaries.

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Funny you bring up Metalico...

looks like a recycler from china is buying it up.
Total Merchant is an investment vehicle formed to seek appropriate opportunities in the United States metals and commodities market. Total Merchant is controlled by Mr. Chung Sheng Huang, the Chairman of the Board and Managing Director of Ye Chiu Group, one of the leading recyclers and producers of aluminum and aluminum alloys in the world and a prominent Asian scrap metal recycler with operating facilities in China and Malaysia.
a look at ye chiu group's website say's based in china
link from matallico's site
Metalico. Inc, - News Release

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Originally Posted by NHscrapman

looks like a recycler from china is buying it up.
Total Merchant is an investment vehicle formed to seek appropriate opportunities in the United States metals and commodities market. Total Merchant is controlled by Mr. Chung Sheng Huang, the Chairman of the Board and Managing Director of Ye Chiu Group, one of the leading recyclers and producers of aluminum and aluminum alloys in the world and a prominent Asian scrap metal recycler with operating facilities in China and Malaysia.
a look at ye chiu group's website say's based in china
link from matallico's site
Metalico. Inc, - News Release

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Stock holders meeting is 9/11th to vote on this. Been debating if I'm going to dabble with the stock. A yes vote, yields about 22% if your long. A no vote and the stock goes to 30 cents or less, maybe even bankrupt. Could be a good short bet. Possible upside of 48 cents and possible downside of 12 cents if your short

Stock is currently at 48 cents. buyout is 60 cents.

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Originally Posted by logansryche

Funny you bring up Metalico...

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there's one out your way. What are they paying for light iron and what is the competition paying?

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Originally Posted by Mechanic688

I have to wonder if those companies were management heavy, meaning their upper echelon got paid in the millions salary while the worker in the yard got close to minimum?? Happens a lot and that kind of stuff is kept hush -hush.

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Thats EXACTLY what happened to the NZ company that was to recycle escrap. They even got in a fi-nant-u-al adviser who has never worked for a company that has not gone bust. And had his qualifications taken away from him, so he was not allowed to do any paperwork at all, but he was "just advising, not actually doing the paperwork..." they said afterwards....

I had talked to a guy while I was scrapping a CRT tv about how they do have some value, but theres no one who buys escrap yet.
So he 'gets on the web' and finds a company thats just starting up, just got a govermint grant etc,
They give him some signs and advertising stuff.
Next thing hes got hundreds of CRTs and stacking them up. Getting $5 cash for each one (thats his profit/income)
6 months later he finds they are bankrupt... And now hes got hundreds and hundreds of CRT's.....

So a year ago he asks me if I 'could break some down as he needs the space' . So I scrap the computers and such and the big good CRT's and he sells the 'sheetmetal scrap' to someone, for far less than it was worth (I think) but we couldn't work the numbers out because he didn't remember what it weighed in the first place..
Like, I told him EXACTLY what to do..... And he does EXACTLY what I told him what NOT to do......

Oh well, he got NZ$100. And I spent a lot of time getting that lightgauge real clean and tidy... But that was where he was to get his $$...

I see a shipping container on his property so I think some guvmint grants paying to take his CRT's away. I should really help him shift them too, I guess.

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Originally Posted by mthomasdev

there's one out your way. What are they paying for light iron and what is the competition paying?

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Not sure but whatever it is it's keeping business between Upstate and Bodine(which dug themselves out of the million dollar hole they dug last year), and shutting out business to everyone else.

Quote:

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Originally Posted by NHscrapman

looks like a recycler from china is buying it up.
Total Merchant is an investment vehicle formed to seek appropriate opportunities in the United States metals and commodities market. Total Merchant is controlled by Mr. Chung Sheng Huang, the Chairman of the Board and Managing Director of Ye Chiu Group, one of the leading recyclers and producers of aluminum and aluminum alloys in the world and a prominent Asian scrap metal recycler with operating facilities in China and Malaysia.
a look at ye chiu group's website say's based in china
link from matallico's site
Metalico. Inc, - News Release

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It'll be interesting to see what the outcome is since Upstate wants Metalico and since Weitsman is Metalico's largest shareholder at the moment, he won't give it up without a fight. Link/

I don't know what my morbid interest in this case (Creative Recycling) is, but .... waters look murkier (though some of this info is a bit dated - there could be updates). The former CEO of Creative was named Jonathan Yob. The bankruptcy trustee cleared the sale of certain technology assets to a buyer called 3S International. The CEO of 3S International is named Joseph Yob, and a VP of sales is Gina Yob. One heck of a coincidence in what one would assume should be an arms length transaction under the circumstances.

Now if you google 3S International recycling, one of the articles that comes up is a recent (as in this month if I read it right) Chapter 11 bankruptcy filing.

Interesting stuff.

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Originally Posted by logansryche

Not sure but whatever it is it's keeping business between Upstate and Bodine(which dug themselves out of the million dollar hole they dug last year), and shutting out business to everyone else.

It'll be interesting to see what the outcome is since Upstate wants Metalico and since Weitsman is Metalico's largest shareholder at the moment, he won't give it up without a fight. Link/

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I agree with you that Adam still wants Metalico, but Carlos will do whatever he can to prevent that. My gut feeling is that Adam is going to let the sale go thru (not that he owns enough to stop it). He'll make about $1 million on his shares.

The new shredder is Penns. is going in now. This is right in part of Metalico's area. I think his plan know is to shred whats left of metalico or Total Merchant. Shouldn't be that hard with Carlos at the helm for 3 more years.

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Originally Posted by mthomasdev

Stock holders meeting is 9/11th to vote on this. Been debating if I'm going to dabble with the stock. A yes vote, yields about 22% if your long. A no vote and the stock goes to 30 cents or less, maybe even bankrupt. Could be a good short bet. Possible upside of 48 cents and possible downside of 12 cents if your short

Stock is currently at 48 cents. buyout is 60 cents.

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Now I'm kicking myself in the ASS! Stock is up from 48 cents to 56 cents and inching closer to 60 cents . Everyone must think they will get a yes vote. This would have been a 16% gain in 5 days. Hopefully someone on here saw my previous post and made a little money.

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Originally Posted by mthomasdev

I agree with you that Adam still wants Metalico, but Carlos will do whatever he can to prevent that. My gut feeling is that Adam is going to let the sale go thru (not that he owns enough to stop it). He'll make about $1 million on his shares.

The new shredder is Penns. is going in now. This is right in part of Metalico's area. I think his plan know is to shred whats left of metalico or Total Merchant. Shouldn't be that hard with Carlos at the helm for 3 more years.

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It would've been uncharted territory for Ben anyhow and woulda been snuffed out quick. Guess we'll see in the end...