The Swiss bank that financed much of the construction of a recycling and composting center in Curtis Bay has filed foreclosure action against its owner, F&E Resource Systems Technology Inc.
In documents filed with the Circuit Court for Baltimore City, Credit Suisse seeks to collect $35.6 million, including $968,920 in past due interest.
The court action comes seven weeks after F&E announced plans for a $20 million private equity offering to gain full ownership of the facility.
Ronald W. Pickett, chairman and chief executive officer of F&E, said at the time that the company's plan was to buy out the two partners, Credit Suisse and Chrysler Capital Corp., that helped finance construction of the recycling facility.
The plan called for the company to also spend $2 million of the proceeds from the offering -- which was to be sold to qualified investors and institutions -- for repairs to the Southeast Baltimore plant.
Mr. Pickett could not be reached to comment yesterday on the filing.
James G. Prince, an attorney with Daneker, McIntire & Davis, a Baltimore law office representing Credit Suisse, confirmed the foreclosure action, but declined to discuss it.
Officials with the Maryland Department of Business and Economic Development, which was involved in the financing of the Curtis Bay plant, said they were not aware of Tuesday's foreclosure action.
In 1991 the state agency issued a $35.5 million industrial revenue bond, through the Maryland Energy Financing Administration, to finance the plant's construction.
Charles F. Porcari, a spokesman for the Department of Business and Economic Development, said the state has no liability in the financing.
The only risk, Mr. Porcari said, is to the bondholders, including Credit Suisse.
F&E's waste recycling and composting plant was designed to handle up to 700 tons of trash daily. The plan was to transform 95 percent of the trash coming in the front door into materials sold out the back.
The Curtis Bay plant recycles such products as high-grade paper, plastic, glass, steel and aluminum to sell to companies in the respective industries.
Other waste, including garbage, was to be made into compost for sale to farmers and nurseries.
