Reidsville scrap metal recycling firm files for Chapter 11 bankruptcy

By Paul Ploumis (ScrapMonster Author)
December 01, 2015 07:42:39 AM
Reidsville, NC-based B.P Greer Recycling has filed for Chapter 11 reorganization bankruptcy.Reidsville scrap metal recycling firm files for Chapter 11 bankruptcy
CHARLOTTE (Scrap Monster): Reidsville, NC-based B.P Greer Recycling has filed for Chapter 11 reorganization bankruptcy. The recent filing with the US Bankruptcy Court for the Middle District of North Carolina Greensboro division admits that the company has been unable to pay debt obligations to the bank which had provided loans to the business.

According to court filing, the company owes around $9.3 million to Carolina Bank. The bank had initiated a lawsuit against the company, following which the court had entered a preliminary injunction. During early-November, the court had approved the sale of majority of the company assets including the Reidsville land, building and equipment.

The company also owes nearly $44K to Rockingham County Tax Department, $24K to Sparks and Sons Service Stations and over $9K to Berkshire Hathaway Homestate Cos. In total, the company has debts ranging between $10 million and $50 million.

The worldwide drop in scrap metal demand has badly affected the company operations. The sharp decline in scrap metal prices has almost halved the revenues from operations. This pushed the company to bankruptcy, noted Charles M. Ivey, attorney for B.P Greer.

The attorney further stated that an auction will be held 12:00 Noon on December 4, 2015 towards sale of assets. A Foss Recycling Inc. subsidiary has already approved the sale price of $2.4 million. Other parties who are interested to purchase the company assets will have to pay $125,000 more than the agreed sale price. In the absence of a higher bid, the assets will be sold to Foss, he said.

Started in 1979, Greer Recycling has been a family-owned and operated business. The company bills itself as one of the most proficient service providers in scrap metal recycling. Greer Recycling has served the public and businesses with container services, demolition, scrap removal and material management.