Sturgis CEO sets Mega Shredder record straight

The CEO of Sturgis Iron and Metal has submitted a written response to a story aired by News Center 16 on Tuesday, May 20th. The correspondence is printed below. Kevin Young chose to respond to the article line by line. On some lines he chose not to comment.

Elkhart’s Mega Shredder isn’t too popular with its neighbors, and now the same can be said for bidders in bankruptcy court. I disagree. It is one of the main reasons the bidders for Sturgis are at the auction.
The so-called Mega Shredder was shunned in recent attempts to auction off the assets of Sturgis Iron and Metal. The shredder was not owned by Sturgis Iron & Metal. It was leased from another party. Therefore, Sturgis Iron & Metal was not permitted to sell the assets. The interested bidders have to contact the party that own it and work out a deal with them.

In fact, the apparent best bid came from a company that specifically noted in writing it was willing to pay $38 million for substantially all the assets, “excluding the Mega Shredder.” Please see the reason above as to the details on why this was done.

The bankruptcy court in Grand Rapids held a hearing on the Sturgis Iron and Metal case on Friday of last week, then again on Monday of this week, while another hearing is slated for Tuesday of next week. That is correct.

“Our understanding was, as of yesterday it had not yet been sold,” said Elkhart Mayor Dick Moore, “so we’re monitoring that every day.” No comment

While the mega shredder has largely been shut down since the company filed for bankruptcy, today it was up and running. We have been running it intermittently to process the inventory that we have at all of our yards.

“Monday, when it started up Monday, boom, I knew something was wrong,” said William Anderson who lives a half block away from the shredder. I don’t believe it is fair to characterize the start up as a boom, which could be interpreted as a liquid propane tank going through the shredder. If these were Mr. Anderson’s words, I will retract my statement because Mr. Anderson is entitled to his opinion. I am only basing my comments on the written words which may or may not have been a summary of what was said and not the audible interview that took place.

Anderson said he thought the shredder was shut down for good by the bankruptcy.

“If it has not been sold then Sturgis Iron and Metal is probably is running it they never been stopped from running it you know,” said Mayor Moore. “Perhaps they’re showing that machine to a prospective buyer.” No comment.

The mayor wants to make it clear that if the shredder end up in the hands of another business, it won’t be business as usual back in Elkhart. No comment

“Whoever runs it, whether it’s them or a new purchaser, is going to have to understand that it is not in compliance with local codes and ordinances and as long as it’s not as long as it remains a nuisance in that neighborhood the city will seek options to stop that machine.” No comment.

The mayor says he was told that moving the machine was unlikely because it would cost some $6 million. No comment.


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