ECS Refining Auction Closes for AMS Gear
The ECS Refining auction scheduled to take place in Sacramento CA U.S. Bankruptcy court has ended with the winning bidder paying more than twice what was previously announced in E-Scrap news on July 19, 2018 . Advanced Technology Recycling (ATR) was one of only 4 qualified bidders represented at the 10:00 am hearing in addition to a small group of interested parties that included customers concerned about the outcome. ” A lot has changed since we formally announced to the bankruptcy trustees we would be bidding on ECS Refining intellectual property and AMS equipment locked within the shuttered facilities” said Brodie Ehresman a spokesman for ATR that attended the hearings. “ATR began the qualification process on July 11, 2018 well ahead of the initial announcement outlining details of the proposed sale” continued Ehresman. Bidders were given the opportunity to tour the facilities in Stockton, Santa Fe Springs CA and Mesquite TX and were required to escrow $40,000 and submit a formal management plan to the DTSC (Department of Toxic Substance Control) office in California and required to sign an NDA prior to reviewing detailed company documents including customers lists that would later sell for more than twice what had been previously reported. “We sent our teams to all 3 locations, outlined in great detail how we would manage the remaining assets which seemed to dwindle by the day , showed up at the auction with check in hand but in the end we just didn’t feel a list that had been distributed to 24 other companies and the remaining equipment was worth the price” said Ehresman
Who won the ECS Refining auction and for how much?
The winning bidder agreed to pay $330,000 for the Intellectual property which included a downed web site and a fraction of the equipment that was previously discussed . “The winning bidder must now get their management plan approved within 15 days by the DTSC or they’ll be forced to forfeit their $40,000 escrow deposit and leave the door open to a secondary bidder who offered” $320,000″ said Ehresman The approved APA also included a bonus clause that requires the winning bidder to pay an additional $30,000 dollars in the event they sign Comcast and at least 2 other major accounts most of which have since removed all their assets and gone out for bid. ” We agreed to those terms” said Ehresman “but we didn’t expect this to come to fruition knowing most customers would base their decision on certified competencies and ITAD management capabilities and not who is willing to overpay for access to a customer list and a small amount of equipment”
So what’s next for ECS Refining customers?
The ECS Refining auction for the AMS Equipment and intellectual property may have ended but it remains to be seen how a small recycling company with only a couple locations will manage the logistical and operational challenges their faced with in the weeks ahead. In the mean time ATR which is ranked as the #4 largest electronics recycling company in the world based on R2 certified facilities has already applied for the necessary permits with the DTSC and has teams on standby in the event any former ECS Refining customers would like to review our credentials that include but are not limited to (8) R2 Certified facilities throughout the U.S. a GSA(General Service Administration) Schedule, ITAR (International Traffic and Arms Regulations) registration, ELD (Electronic Logging Device) enabled fleet, free online asset management and tracking and much more. If you would like a world class industry leader in ITAD/ITAM services competing for your business chat with us live now on our website or call us to schedule a comprehensive service overview at 877-781-7779 to learn how we can get your environmental programs back on track.