CBp Carbon Replies to Fader Statement

CBp Carbon Industries has released a press statement in response to the August 9 statement published by Fader Technologies LLC. The company states it is "saddened" that it must response to this release, but notes it has done so in order to "correct serious falsehoods and libels and to comfort the Company's stock holders."

In the August 9 statement, titled “Inventor EU Selected Tire Recycling Process Resigns From CBp Carbon Industries”, Fader Technologies reports the filing of a writ in the Commercial Court in Hasselt, Belgium in order to enforce the termination of John Fader’s relationship with CBp Carbon Industries. Mr. Fader’s writ alleges, among other things, “breach of trust” and the “unlawful use of Petitioner’s name and reputation.”

“I resigned from my company because of what I considered to be gross mismanagement of the business by its President John Novak, and a disturbing lack of proper corporate governance and transparency; and, because after four years, selection by the EU, and shareholder investment of approximately USD $60 million, my proven technology has still not yet been successfully commercialised,” Mr. Fader said.

In its response, CBp Carbon claims “Mr. Fader’s news release is false on almost all material matters and, as far as the company can ascertain, is meant as an extra-judicial attempt to extract more money from the company.”

Fader states that CBp Carbon’s “only existing facility is in Cyprus and it is not yet operational.” In its August 11 release CBp Carbon replies that company manager and CTO Peter Tsantrizos completed successful development of its Csongrad, Hungary pilot plant and testing of resultant product in 2008. At the conclusion of pilot operations CBp Carbon determined that the facility’s expansion was not advisable and that it should locate its commercial plant in Cyprus. Under the leadership of Mr. Tsantrizos – CBp Carbon adds that Mr. Fader, reportedly not well enough to travel, did not provide any input in this project – the Cyprus commercial plant was built and “substantial new technological developments were effected.” The facility, says CBp Carbon, was “substantially completed in July, 2009” and tyres are now being processed in ‘hot tests’.

In closing, CBp Carbon writes it is “saddened that, for the comfort of its stock holders, it has felt required to reply to Mr. Fader in this manner and will not do so again as it is demeaning to all parties. If Mr. Fader has initiated a lawsuit the company will make its replies in court.”