Philip Services Corp., Hamilton, Ontario, Canada, has sued Robert Waxman, the former head of its scrap metals division. Waxman, in turn, held a press conference to defend himself and question the actions of other former Philip Services senior managers.
In a suit filed in a Canadian court, Waxman, two former traders in the Philip Services metals division, and employees at two trading companies are accused of charges ranging from breach of contract, breach of fiduciary duty, fraud, fraudulent misrepresentation and conspiracy to defraud. "This proceeding was commenced after a thorough and lengthy investigation, and in consultation with the company’s external counsel," Philip Services board chairman Robert Knaus said in a statement.
The suit contends that copper was traded from Philip to two American trading houses in which Waxman had a "secret, controlling interest." The copper was then resold at a higher value, with the defendants profiting from the difference, according to the suit.
Waxman held a press conference on the same day the suit was filed and appeared with stacks of paperwork that he says supports his counterclaims. Waxman’s attorney called the allegations against Waxman incorrect and inaccurate, and further accused the company of hiding losses from its shareholders in 1996 and 1997.
Philip Services Corp. is currently attempting to sell off many of the assets it acquired in 1996, 1997 and early 1998, including most or all of its scrap metal processing operations.
Ireland Alloys' U.S. Operations Now Part of ELG
ELG Haniel Metals Corp., Duisburg, Germany, has acquired Ireland Alloys Inc., Houston, and its subsidiaries National Nickel Alloy Corp., Greenville, Pa., and Astromet Inc., Schererville, Ind. The Ireland Alloys U.S. operations were purchased from Ireland Alloys Ltd. of Scotland.
The three companies will now operate as ELG Ireland Alloys Inc. and will remain based in Houston. According to ELG officials, the renamed company will "expand its existing presence in the aerospace and corrosion markets."
The Scottish company Ireland Alloys Ltd. was not part of the acquisition, and will continue to operate independently in Europe. Ireland Alloys’ activities in the U.S. are subject to a non-compete agreement with ELG.
Globally, the ELG Haniel Group has an annual volume of more than one million tons of stainless steel scrap handled, with about 30% of that business taking place within the U.S. ELG chairman Friedrich Teroerde is currently residing in the U.S. to concentrate on the company’s American activities. He has commented that the company has "an ongoing interest" in further acquisitions.