SOUTH WINDSOR, Conn., March 29 (Bloomberg) — Handy & Harman Refining Group, the largest precious metals refiner in North America, sought protection from its creditors after losses related to a bungled $12.5 million gold transaction. Handy & Harman’s parent, Perth-based Golden West Refining Corp., said the Chapter 11 filing in U.S. Bankruptcy Court in Hartford, Connecticut, last night was made “with a view to protecting the interests of all creditors.”
Golden West stock was suspended from trading on the Australian Stock Exchange on Feb. 28.
The losses stem from a purchase by Handy & Harman of $12.5 million in gold from an “internationally recognized secure carrier in Peru,” which was confirmed by an inspection agency last September, Golden West said last week.
The gold was never delivered to Handy & Harman, and was returned to the Peruvian company “in an unauthorized manner,” Golden West said. Most of Handy & Harman’s senior management has resigned, Golden West said.
Calls to Tony Pearce, newly named president and chief executive of Handy & Harman, and to Sean Russo, a director of Golden West who is at Handy & Harman’s offices in South Windsor, were not returned. Handy & Harman buys scrap metal from mines and recycled jewelry, coins, dental fillings and other items made with gold and silver, which it refines into 400-ounce bars that are used by manufacturers.
