Silver Recycling forced to sell subsidiaries

Archiv – Precious metals recycling company Silver Recycling Co. has been forced to sell back its US subsidiaries Pyropure Inc. and Sun Valley Film Wash Inc. because the company could not meet all the conditions under terms of a US$2,1 million vendor note from last May. The Vancouver, Canada based company says the unnamed vendor had exercised its option to reacquire Pyropure and Sun Valley in return for its shares of Silver Recycling.Unites States / Canada | Precious metals recycling company Silver Recycling Co. has been forced to sell back its US subsidiaries Pyropure Inc. and Sun Valley Film Wash Inc. because the company could not meet all the conditions under terms of a US$2,1 million vendor note from last May. The Vancouver, Canada based company says the unnamed vendor had exercised its option to reacquire Pyropure and Sun Valley in return for its shares of Silver Recycling.
The transfer was effective Dec. 31. The vendors have granted Silver Recycling a right of first refusal to match the terms of any offer they may receive for the sale of the two companies up to May 22.
’It is unfortunate that we were unable to meet all of the conditions due to the ongoing difficult financial markets,’ President and CEO Don Holmstrom says. ‘€˜Due to timing and tax consequences for the vendors, they decided to exercise their rights to buy the subsidiaries back. We were able to meet one of the conditions which was the execution of a binding agreement with a second silver recycling target. With respect to the failed condition of raising financing, we have had meaningful parties emerge recently with interest in SRC. Those discussions will continue in early 2009.’€™
Silver Recycling is a consolidator of privately owned silver and other precious metals recycling companies.