E-Scrap Processor Reaches Settlement over CRT Cleanup

SEATTLE (Scrap Monster): Middlebury, Vt.-headquartered American Retroworks announced that it has reached an agreement with landlords in settlement towards cleanup of piled CRT monitors as part of Closed Loop program.

The settlement is being reached in the case before the U.S. District Court for the Southern District of Ohio, in which the warehouse owners Garrison Southfield Park and Olymbec USA had demanded help from around 40 suppliers including American Retroworks in cleaning up the three warehouse facilities which hold around 160 million pounds of CRT materials. As per the agreement, the company has agreed to pay $60,000 to the landlord.

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Based on the new estimate of project cost for cleaning up the sites, American Retroworks should have paid $427,615. However, the processor claimed that they could not afford to pay such a huge amount. In doing so, the company also presented the income tax returns statements of the past five years before the court. Incidentally, the company had reported negative retained earnings at the end of the previous year.

As per the settlement agreement submitted to the court, American Retroworks will make an upfront payment of $10,000. The rest will be paid as monthly payments of $5,000 each over the period of next ten months. A final ruling by a judge is awaited.

The e-scrap processor had shipped over 2.5 million pounds of CRT materials to the warehouses during the period from May 2012 to January 2014.