Attorney Steven Weiss, the Chapter 11 bankruptcy trustee for Spectrum, told Boroff Wednesday that Spectrum is a viable business now that it is under new management. He hopes to have Spectrum sold intact to new owners who will keep it running.
SPRINGFIELD – By Jim Kinney
A manager first hired in March by a court-appointed receiver to bring order to anarchic operations at Spectrum Analytical in Agawam will be staying on the job, U.S. Bankruptcy Judge Henry J. Boroff ruled Wednesday afternoon.
Consultant Seth Schalow’s job will be to keep Spectrum running, its customers satisfied, its bills paid and and its 150 employees working and getting paid as Schalow helps market the business for sale.
Attorney Steven Weiss, the Chapter 11 bankruptcy trustee for Spectrum, told Boroff Wednesday that Spectrum is a viable business now that it is under new management. He hopes to have Spectrum sold intact to new owners who will keep it running.
Weiss told Boroff that Schalow has already met and talked with perspective purchasers and even lead one on a tour of the Agawam facility on Tuesday.
Weiss, a lawyer at Shatz, Schwartz and Fentin in Springfield, was appointed trustee May 12 and was not the person who hired Schalow. Despite only working together a short time, Weiss told Boroff he’s been impressed by Schalow’s professionalism and the stability he’s brought to Spectrum.
“As you can imagine, the employees at Spectrum have been in shock as these events have unfolded,” Weiss said.
According to its website, Spectrum does environmental analysis on sediments, soils, sludge, solid waste, hazardous waste, drinking water, groundwater, industrial wastewater, plant and animal tissue and air.
Spectrum has headquarters and a lab at 830 Silver St. in Agawam as well as labs in North Kingstown, Rhode Island and Tampa, Florida, and an office in Syracuse.
According to court papers, Bank Rhode Island seized control of Spectrum from founder Hanibal C. Tayeh in March after problems were found with checks related to $8.9 million in loans Bank Rhode Island had made to Spectrum concerning its business dealings in Saudi Arabia and Lebanon.
Tayeh, who lives in Westfield, is no longer involved in the management of Spectrum.
In March, Bank Rhode Island discovered e that a Spectrum customer in Saudi Arabia had falsified a letter of credit.
Tayeh wrote in court documents that he personally flew to Saudi Arabia after the irregularities were discovered and obtained a confession from the customer in question. The contract was subsequently taken over by the Saudi government, Tayeh wrote.
Tayeh said his company has been making the payments on the loan.
But the bank also makes the following allegations:
- That Spectrum didn’t have any business to back up certain invoices for work performed for a Saudi client;
- That a check drawn through a Lebanese bank to pay for those services was fraudulent;
- That Tayeh instructed an employee to delete emails form a debtor last month;
- That Tayeh removed a computer from the office and replaced it, and
- That Tayeh used loan proceeds to pay off other loans, including loans from family members.
- The company has been in business for 25 years.
