Rollex files emergency motion, asks court to force Ormet to comply with environmental testing

By Jeff Pines

Washington, Aug. 25 - Rollex Corp, which won an auction for Ormet Corp.'s Jackson, Tenn., facility, filed an emergency motion with the U.S. Bankruptcy Court for the Southern District of Ohio Wednesday to force Ormet to comply with Rollex's request for environmental testing.

Rollex bid $13.25 million for the property.

Mostardi Platt Environmental, which Rollex retained to conduct environmental tests on the Jackson facility, tried to start the tests but Ormet told the testing firm and Rollex that it would not allow any soil samples or drilling to be done.

In a follow-up conversation between Rollex's counsel and Ormet's attorney, the Ormet attorney confirmed that Ormet will not allow any further testing for a Phase II environmental test, which requires a professional to take soil samples, Rollex said.

The last Phase II environmental test at the Jackson facility was nine years ago. Ormet said it has already fixed those problems from 1995.

Rollex is concerned the Jackson plant may have environmental problems lurking beneath the surface and said it did not agree to buy the site as is but on the basis of representations and warranties made by Ormet.

Under the purchase agreement, Ormet is supposed to give Rollex reasonable access upon reasonable notice during normal business hours, which Rollex said it has asked for.

According to Rollex, Ormet has "failed to articulate any reason for their refusal to allow the testing to be conducted."

From Rollex's position, if further testing proves there are not any problems, then the sale can go through and the testing confirms what Ormet has said about the facility. But if further testing shows there are problems, Rollex said it has a right to know about it.

Ormet filed for bankruptcy on Jan. 30. Its Chapter 11 case number is 04-51255.

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