NEW YORK, July 31, 2002 (PRIMEZONE) -- Metal Recovery Technologies Inc. (MRTI), announced today that it has entered into a settlement agreement with Meyado International Limited regarding the terms of their joint ownership of Metal Investments Trust Limited (MITL). MITL is a United Kingdom 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. This 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 August. 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% ownership stake in MITL. Meyado has agreed to invest a total of $12 million in MITL's East Chicago, Indiana dezincing facility.
A basic website, www.metalrecovery.net, has been established to provide company information and links for Metal Recovery shareholders and other interested parties. An "FAQ" is also being developed; questions can be submitted for consideration via Email to directors@metalrecovery.net. The website will be available beginning August 9.
This press release contains forward-looking statements relating to the settlement agreement and reorganization of MRTI. The events described in such forward looking statements are subject to risks that could cause actual results to differ materially from those anticipated in these statements. Specifically, the approval of the Settlement Agreement is in the discretion of the bankruptcy court and, therefore, may not occur by the end of August or at all. Any reorganization plan for MRTI is subject to negotiations with MRTI's creditors, approval by the bankruptcy court and other considerations and, accordingly, MRTI and it shareholders are subject to the risk that no reorganization plan may be entered into and any reorganization plan that is entered into may not be beneficial to MRTI or its shareholders.
More information on this company can be found on eWorldWire's Online Newsroom at: http://www.eworldwire.com/profile/metalrecovery.htm and HTML: http://www.eworldwire.com/wr/073102/metalrecovery.htm