ECS Refining Bankruptcy Updates
According to a court document ECS Refining filed for Chapter 11 bankruptcy with the U.S. Bankruptcy courts in Sacramento, California on April 24, 2018 in an effort to restructure a $32,888,318.00 debt. Update, on July 2, 2018 ECS Refining shuttered all U. S. facilities and laid off their entire work force. ECS Refining a U.S. based e-Steward certified e-Waste recycling company manages 8 facilities throughout the U.S. The court documents indicate ECS Recycling has $7.1 Million in assets, prepaid expenses and receivables,which is considerably less than the $25,927,581 dollars in debt they owe to Summit Bridge an investment company that has not received a payment on the debt since December 1, 2017.
What’s next for ECS Refining?
An emergency hearing took place on April 26, 2018 and the United States Bankruptcy Court of Eastern District of California ruled ECS Refining Inc. will be permitted to borrow up to $100,000 from Butch & Sundance, LLC on an emergency basis. Details of the lending agreement are not known but this does not come as good news to the other companies that represent the remaining 23% of debt totaling more than $5.8 Million dollars. ECS Refining has since shuttered all facilities throughout the U.S. which orphaned 8 Million pounds of customers assets and data bearing devices within their facilities which will soon be auctioned off to pay their $32 Million dollar debt.
Should ECS Recycling Customers be concerned?
If you are an ECS Refining customer and concerned about the final disposition of your assets, data bearing devices or potential returns on your unsold assets you are at risk and we recommend locating a new vendor.
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ECS Refining has been in the recycling industry since the 1980’s and it remains to be seen if this strategy will pay off to overt an unwelcome take over by an investment partner. In an article published by e-Scrap news their CEO Jim Taggart said “We’re still taking material in, we’re processing it and keeping everybody working”. The Chapter 11 filing will also free the company from threats of lawsuits and creditor actions while they reorganize but they’ll have an uphill battle with their primary investor leading the charge of creditors seeking payment.
How is ATR different?
Advanced Technology Recycling (ATR) is a privately held ITAD (Information Technology Asset Disposition) management company that has been family owned and operated since 1992. ATRs debt free fiscally responsible business model eliminates our clients risk from the hazards associated with Bankruptcies and Private Equity Partnership and Financing models. ATR has (9), R2, ISO:14001, OHSAS:18001 certified facilities throughout the U.S. and ATR’s technologically advanced infrastructure is unmatched in the Recycling and ITAD industry. ATR provides Secure Reverse Logistics & Destruction Programs, Free Online Reporting, Transparent Profit Sharing programs with quarterly P&L statements and a wide range of Recycling and Asset Management programs that can be tailored to meet specific customer needs. Chat with a customer service team member now at www.ATReCycle.com or email us for a confidential and free quote Support@ATReCycle.com ReThink Electronic Recycling and ThinkATR!