PITTSBURGH A judge has
granted a banks emergency request to add security at a
Gary, Ind., scrap metal processing operation after the
scrapyards owner allegedly threatened to damage the auto
Bank of America NA and other
financing parties have been trying to repossess equipment from
Summit Inc., also known as Alpha Scrap Inc., which allegedly
has been in default on its loan since 2009 (
amm.com, Sept. 16, 2011). The financiers claim
that owner Peter Coulopoulos installed the shredder but failed
to pay the loans on the equipment.
The owner is alleged to have
told two bank officers that he would damage the equipment,
according to documents filed in U.S. District Court in Indiana.
"Coulopoulos made a series of threats, including specifically
his threat to torch the shredder leased to Summit,
before he would allow plaintiffs to gain control of it," the
court papers said.
Judge Andrew P. Rodovich
authorized the appointed limited receiver to provide supervised
security at the site, according to court documents.
Bank of America said it had no
way to protect the shredder, which is still operating, as its
request for repossession works its way through the court
system. The banks intention is to retrieve the Wendt
model 82-104 heavy shredding system and sell it to recoup its
losses. It reportedly has a liquidation value of $7.2
A status conference is scheduled
for March 7, when the judge will be updated on security
measures and hear the limited receivers recommendations
for ongoing security.
Coulopoulos could not be reached