[Sqg-program] Creative Recycling Systems closing

[Price, John L. "Jack"]

According to this piece, Creative Recycling Systems will be closing its 2 Tampa electronics recycling facilities.

http://www.bizjournals.com/tampabay/news/2014/05/29/creative-recycling-systems-in-tampa-warns-of.html

Here's some more: http://www.bizjournals.com/tampabay/news/2014/05/30/regions-sues-creative-recycling-for-12m-files.html

Regions<http://www.bizjournals.com/profiles/company/us/al/birmingham/regions_bank/8399> Bank has filed a lawsuit in Tampa against Creative Recycling Systems LLC and a slew of related LLCs for more than $18 million it says it's owed by the company, and has filed a motion to appoint a receiver in the case.
The lawsuit was filed in the U.S. District Court Middle District of Florida on May 27, just one day before Creative Recycling warned the State of Florida it would be laying off more than 70 employees in Tampa and closing two local facilities. <http://www.bizjournals.com/tampabay/news/2014/05/29/creative-recycling-systems-in-tampa-warns-of.html>
Last year, Alabama-based Regions and Creative entered into a forbearance agreement, the suit says, providing the borrower more time. That move failed to remedy the problem. Regions contends in the suit that Creative Recycling does not have the funds to make the payments, which "weighs very heavily" in favor of appointing a receiver.
Creative was once owned by Intersection LLC in Connecticut, which is named in the suit. However, when reached on Thursday about the layoffs, Richie Rakowski<http://www.bizjournals.com/tampabay/search/results?q=Richie%20Rakowski>, principal and co-founder, said his company is no longer involved with Creative. He declined to say when their involvement ended.
The suit asks that the receiver be given the power to "potentially wind up the affairs of and dissolve [Creative Recycling]." Additionally, the suit says the "Borrowers' management is deadlocked, resulting in an inability to cure the defaults or prevent waste of corporate property and assets."
The motion for receivership states the borrowers owe more than $18.7 million in principal, plus interest and related fees and costs.
The Tampa Bay Business Journal previously reported that Creative Recycling had 2012 revenue of $33.78 million. State documents show Richard Cochrane<http://www.bizjournals.com/tampabay/search/results?q=Richard%20Cochrane> is the company president. He replaced Jonathan Yob<http://www.bizjournals.com/tampabay/search/results?q=Jonathan%20Yob>, who was president for close to 18 years, according to his LinkedIn<http://www.bizjournals.com/profiles/company/us/ca/mountain_view/linkedin_corp/406059> profile.
Neither Creative nor Regions would comment on the lawsuit. Holland & Knight<http://www.bizjournals.com/profiles/company/us/fl/tampa/holland_%26_knight_llp/3232949> in Tampa is representing the bank in the lawsuit and also declined comment.
Jack

John L. (Jack) Price
Environmental Consultant
Waste Reduction MS 4555
Florida Department of Environmental Protection
2600 Blair Stone Road
Tallahassee, FL  32399-2400
Phone:850.245.8751
Fax: 850.412.0627
john.l.price at dep.state.fl.us<mailto:john.l.price at dep.state.fl.us>
www.dep.state.fl.us/waste<http://www.dep.state.fl.us/waste>
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