HUDSON, Colo. (Nov. 21, 2011) — A Denver financial services firm is looking for a buyer for what locals call “tire mountain,” a tire landfill in Hudson estimated to have 60 million tires stockpiled that was operated by now-defunct tire recycler Magnum d'Or Resources Inc.
FGH Financial L.L.C., a one-time lender for Magnum d'Or, foreclosed on the 12-year old tire recycling firm in May 2010 and auctioned the firm's U.S. assets two months ago after the firm's owners failed to restructure their finances or sell the property, according to Steve Gittelman, a principal in FGH.
Magnum d'Or's principal asset was the landfill in Hudson, which FGH has engaged a registered tire hauler to manage, Mr. Gittelman said.
“Our immediate concern is that the project is safely managed until we can find an experienced and reputable tire recycling company to purchase and operate the site,” Mr. Gittelman wrote in a Nov. 13 guest commentary in the Denver Post.
“After the company obtains all necessary approvals and permits, the site will be reopened, thereby providing a facility for the proper disposal and recycling of waste tires,” he added. FGH has no intention of operating the site as an ongoing business, he wrote.
In a phone interview with Tire Business after the commentary was published, Mr. Gittelman said FGH has been searching for a buyer for the Hudson site for many months.
“I don't know how imminent a sale is, but a number of parties have expressed an interest,” he said.
Magnum d'Or's woes don't end there.
Law firm Rigrodsky & Long P.A. filed a class-action lawsuit earlier this year against the firm in federal district court in Wilmington, Del., accusing Magnum d'Or of making false statements to shareholders about the company's growth and operations between July 2008 and April 2010, and also failed to disclose an investigation of the company by the U.S. Securities and Exchange Commission.
Magnum d'Or issued more than 90 press releases between January 2008 and April 2010, describing in glowing terms the company's recycled rubber products, financial deals and growth prospects.
Meanwhile, on Oct. 20, the Denver city district court ordered the Colorado Department of Public Health and Environment to pay $124,670 in scrap tire management funds to the court, which would ensure its proper disbursement.
FGH wanted to stop the agency from paying scrap tire management money to Magnum d'Or, which was no longer responsible for the Hudson landfill. The agency said it had no opinion as to which party—Magnum d'Or or FGH—received the funds.
A telephone number in Florida for Magnum d'Or CEO Joseph Glusic had been disconnected. Carolyn McIntosh, a Denver attorney representing Magnum d'Or, could not be reached for comment.
To reach this reporter: [email protected]; 202-662-7211.