Lawsuit: Feher Rubbish owes bank, creditors, and state millions
SYRACUSE, N.Y. —
A lawsuit filed in state supreme court claims Feher Rubbish Removal owes its creditors and the state of New York millions of dollars.
The lawsuit filed by Solvay Bank says the garbage removal company — which abruptly ceased operations last week — has outstanding balances on its line of credit, promissory notes and credit cards from the bank that total $500,959.15. The bank says there is an additional $1,127,595 it may be owed by Feher from letters of credit it issued on Feher's behalf.
In addition to the money the lawsuit says Solvay Bank is owed, Feher also owes the New York State Department of Labor $1,414,378.42, American Express $240,517.52, and the Onondaga County Resource Recovery Agency $676,729.42 based on claims made by those entities against Feher, the lawsuit says.
Solvay Bank's lawsuit has two causes of action; one is breach of contract, the other seeks the appointment of a receiver, which the suit says "is necessary to protect the value of Feher Rubbish Removal's assets and allow the orderly distribution of its assets."
The bank also claims in its lawsuit that employees of Feher told the bank Feher has been taking its assets to scrap yards to sell.
"There is imminent danger that Feher Rubbish Removal's asset will be lost or diminished in value if a Receiver is not appointed," the lawsuit asserts.
Towns in Central New York were sent scrambling last week to find a new trash solution after Feher abruptly halted its operations.
Employees outside the company's headquarters on State Fair Boulevard said they didn't know anything was out of the ordinary until they showed up for work Friday morning.
"We showed up today and they told us that they’re going to be closing the doors pretty soon and they want us to continue to work out until our contracts were up... but they weren’t sure when we’re going to get paid," Chris Taylor, a driver for the company, said. "That's all I needed to hear. I turned around and walked out."
The company had offices in Syracuse, Utica, Watertown, Geneva and Rochester which served much of the Central and Western New York regions.