Metal Recovery Technologies Inc. has entered into a settlement agreement with Meyado International Ltd. regarding the terms of their joint ownership of Metal Investments Trust Limited. MITL is a UK-based company that is the parent company of Meretec, Inc., a U.S. entity that proposes to operate a facility for the dezincing of galvanized steel scrap.
MRTI is currently involved in a Chapter 11 bankruptcy proceeding. The settlement agreement has been submitted to the bankruptcy court for approval; MRTI hopes to obtain formal approval of the settlement agreement by the end of this month. Once the settlement is approved by the bankruptcy court, MRTI's directors will be working with the company's creditors to develop a reorganization plan.
Under the terms of the settlement, MRTI will retain a 20 percent ownership stake in MITL. Meyado has agreed to invest a total of $12 million in MITL's East Chicago, Indiana dezincing facility.