Planet Resource Recovery, Inc. Declares Weisenberg/Inspar Field Services, LLC in Default of Mediated Settlement Agreement
December 08 2011 - 9:30AM
Marketwired
Planet Resource Recovery, Inc. (PINKSHEETS: PRRY) announced today
that after months of good faith negotiations and a Mediated
Settlement Agreement, by and between Planet Resource Recovery and
Kurt Neubauer v. Kent Weisenberg and Inspar Field Services, LLC,
Kent Weisenberg and Inspar Field Services, LLC are in default of
the Agreement.
On May 31, 2011, the parties to Civil Action No.4:10-cv-05086,
pending in the United States District Court for the Southern
District of Texas (Houston Division), agreed to settle their
disputes and entered into a Mediated Settlement Agreement. The
material financial terms of the Mediated Settlement Agreement are
as follows: Kent Weisenberg agreed to pay Planet Resource Recovery,
Inc. a total of $575,000 ($72,250.99 of which was to be paid
directly to specific Planet Resource Recovery, Inc. and Inspar
Robotics, LLC creditors) and return all Planet Resource Recovery,
Inc. shares, (17,214,285 common shares) held by the plaintiffs and
nominal parties to that action. In exchange, Planet Resource
Recovery, Inc. agreed to return and/or convey all Inspar Robotics
intellectual property to Weisenberg and dismiss all counterclaims.
In addition, Kent Weisenberg and Planet Resource Recovery, Inc.
resolved their dispute on mutually agreeable and satisfactory
terms. The Parties agreed that they hereby rescind all prior
statements made against the other. This settlement resolved all
claims and counterclaims pending between the parties, including
former Planet CEO Kurt Neubauer.
The original terms of the Mediated Settlement Agreement called
for an initial payment of $425,000 (inclusive of the direct
payments to creditors) on or before August 1, 2011, with a $150,000
letter of credit issued by a third party financial institution in
Planet Resource Recovery, Inc.'s favor, payable on or before July
11, 2012.
On July 29, 2011, Kent Weisenberg and Inspar Field Services, LLC
requested and Planet agreed to modify the Mediated Settlement
Agreement in exchange for a $5,000 cash payment and Weisenberg's
agreement to pay the entire $575,000 in full (including direct
payments to creditors) on or before August 16, 2011.
On August 19, 2011, Kent Weisenberg and Inspar Field Services,
LLC requested and Planet again agreed to modify the Mediated
Settlement Agreement in exchange for a $40,000 cash payment toward
the settlement and Plaintiff's agreement to pay to Planet the
entire remaining balance (including direct payments to creditors)
on or before September 29, 2011. Weisenberg paid the $40,000 on
August 19, but failed to meet the obligations by September 29,
2011, thus being in breach of the remaining terms of the Mediated
Settlement Agreement, as modified.
On October 6, 2011 Planet formally demanded that Weisenberg cure
the default. As of the issuance of this release, Weisenberg and
Inspar Field Services, LLC remain in breach of the Mediated
Settlement Agreement.
Planet has declared a default, and is in the process of
evaluating its best course of action, including litigation. The
parties are currently in negotiations to address the breach of the
Mediated Settlement Agreement.
About Planet Resource Recovery, Inc.
Planet Resource Recovery, Inc. is the developer, manufacturer
and marketer of PetroLuxus™, a Green Technology that maximizes
hydrocarbon recovery in the Oil & Gas industry. Documented well
history case studies indicate deployment of PetroLuxus technologies
has helped Oil & Gas Operators reduce maintenance costs,
decrease downtime and increase oil recovery. For more information
visit: www.planetresource.net.
Safe Harbor Statement
Under The Private Securities Litigation Reform Act of 1995: The
statements in this presentation that relate to the Company's
expectations with regard to the future impact on the Company's
results from new products in development are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. The results anticipated by any or all of these
forward-looking statements may not occur. Additional risks and
uncertainties are set forth in the Company's Annual Report for the
year ended December. 31, 2009, the Company's Quarterly Report for
the First quarter ended March 31, 2010. The Company undertakes no
obligation to publicly release the result of any revisions to these
forward-looking statements that may be made to reflect events or
circumstances after the date hereof, or to reflect the occurrence
of unanticipated events or changes in the Company's plans or
expectations.
Contact: Planet Resource Recovery, Inc. 281-213-5622
Email Contact
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