Chapter 7 Bankruptcy Filed by N.Y. Steel Company

Written by CFB Blogger. Posted in Blog

Joan Roth, President of Roth Steel Corp., shuttered the scrap metal recovery facility in February after one hundred years in business. The company, which laid off its 33 employees, has filed Chapter 7 bankruptcy. The company lists assets and liabilities at between $1 million and $10 million. Onondaga County Industrial Development Agency and the Onondaga Resource Recovery Agency are among the many creditors of the steel company. According to an in-depth article by Rick Moriarty on www.syracuse.com, Onondaga County Industrial Development Agency said that it had not received payment for 283 tons of steel, worth some $60,000, that it had sold to Roth in 2013. Mary Beth Primo, the agency’s Executive Director, expressed doubt about ever seeing payment for this transaction. Onondaga Resource Recovery Agency reports that they are owed $52,000 for scrap metal it had collected at its Ley Creek and Rock Cut Road drop-off stations and that had been sold to Roth. From the news report, the steel company has had environmental problems at the scrap yard since 2008 when it paid a $150,000 fine to settle environmental violation charges by the state Department of Environmental Conservation. The charges spanned from the 1990s through 2006 and included “improperly disposing of solid waste and hazardous substances, failing to control storm water runoff and failing to prevent petroleum discharges”. In January 2013, the company signed a consent order promising to remove 2,500 tons of auto shredder residue stored on the property for over 18 months. Under state law, residue from an auto shredder cannot be kept on a property without a disposal permit for more than 18 months. Roth agreed to pay a $5,000 state fine for excessive air pollution from its automobile shredder. Roth could have been fined $20,000 if it failed to comply with the order. One former Roth Steel employee told the newspaper that the facility was unable to compete with Ben Weitsman of Syracuse Scrap Yard. Fact or sour grapes… perhaps time will tell, perhaps not. The Client First Bankruptcy attorneys are an unsurpassed staff of the most knowledgeable consumer bankruptcy attorneys in the country, representing thousands of clients in consumer bankruptcy matters. Client First Bankruptcy attorneys are current on all of the new Chapter 7 and Chapter 13 bankruptcy laws and, with offices across the country we are familiar with specific bankruptcy law in many states. Client First Bankruptcy attorneys answer their phones Monday through Friday from 8:30 a.m. – 6:00 p.m. (Central Time) so you can get your initial complimentary consultation at a time that is convenient for you. Our aggressive representation and extensive experience have earned the Client First Bankruptcy attorneys a national reputation for excellence in the representation of debtors in financial distress. Call us today toll-free at 800-383-6004 and log onto our interactive website at www.clientfirstbankruptcy.com.