Future of Mega Shredder unknown after owners file for bankruptcy

by Ed Ernstes (ernstes@wsbt.com)

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Sturgis Iron and Metal, owners of the Mega Shredder in Elkhart, filed for Chapter 11 bankruptcy

Sturgis Iron and Metal, owners of the Mega Shredder in Elkhart, filed for Chapter 11 bankruptcy. (WSBT photo)

By Beth Boehne

ELKHART — It may be the end of the line for a noisy and controversial neighbor in Elkhart. The owners of the Mega Shredder recycling operation have filed for bankruptcy.

Since it went online in 2006, people who live near the facility complained about problems with noise, vibrations, and odors.

Some neighbors want to know if bankruptcy is just a temporary fix.

The Mega Shredder is still running, but not as much as it used to. Earlier this month, Sturgis Iron and Metal filed for bankruptcy after a sale of the business fell through.

On top of that, the company faces fines for ongoing code violations related to noise, vibrations and odors — problems that neighbors say still need to be totally resolved.

“This is not a victory for the neighborhood,” said neighbor Darrin Snyder-Belousek. “It was never our purpose or objective that Sturgis Iron and Metal should go out of business, or that they should end up in bankruptcy."

Under Chapter 11 bankruptcy, the company can continue to run the operation, while restructuring its debts to more than 20 different creditors.

One firm has claims approaching nearly $4 million.

“It really leaves us in the same situation, but with a lot more questions,” Snyder-Belousek said.

Some homeowners who live near the facility say the fact that the company has filed for bankruptcy doesn't bode well for the way it is running the facility.

"Well that tells me that they are not the reliable people that they should be as far as paying their bills,” said Perry Kirkendoll, who lives near the facility.

"I've experienced quite a number of calls from constituents,” City Councilman Ron Troyer told WSBT News. “Internally I know they working on a number of issues and the people are very concerned and interested of the direction this is going to go.”

The company also has separate recycling operations in Elkhart, South Bend and Sturgis, Mich.

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