Inventor EU Selected Tire Recycling Process Resigns From CBp Carbon Industries

HASSELT, Belgium, Aug. 9 /PRNewswire/ -- On August 7, 2009, John (Jack) Fader, an internationally renown engineer and inventor of a patented technology for the production of high quality carbon black from pyrolysis char, filed a writ (ref. 209/146172) in the Commercial Court in Hasselt, Belgium, country headquarter seat for the European Union, to enforce termination of his relationship with CBp Carbon Industries, Inc., a company he co-founded in 2005 with John T. Novak, a stock investor promoter from Vancouver, Canada; Athens, Greece; and Bratislava, Slovakia. Mr. Fader had formally resigned from both the company and its board in March, 2009, but the company continued to promote him on its website as a Director and as Executive VP of Technology.

At CBp Carbon Industries Inc, an environmental company engaged in the recycling of scrap tires to produce marketable products, Mr. Fader, a founding member of the European Tyre Recycling Association (ETRA), had been responsible for the implementation of his patented technology he developed in Detroit, Michigan in co-operation with the USCAR Vehicle Recycling Partnership. After successfully demonstrating the process at a fully integrated production plant in Hungary, the European Union CRAFT Tyre Recycling Project Team selected Mr. Fader's process as "the best commercially available recycle tyre technology" and the only one capable of meeting the EU project tyre recycling goals. However, during the summer of 2008, John Novak abruptly shut down the Hungarian facility and moved the equipment from central Europe to Cyprus.

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 commercialized," Mr. Fader said.

Mr. Fader's resignation from CBp Carbon Industries Inc. follows the resignation in January, 2009, of the company's US General Counsel who had earlier resigned from the board, as well as the resignations of the company's Director of Operations for Europe and the Middle East, and the company's Chief Financial Officer.

CBp Carbon Industries is publicly traded on the OTC Market "pink sheets" in the United States under the symbol CBPJ.PK. The company's single largest institutional investor is the Amsterdam, Netherlands group, GO Capital Asset Management BV, which placed USD $50 million into CBp Carbon Industries, along with a handful of securities investments made by other private Dutch investors. GO Capital is the fund manager of the Global Opportunities Fund (now in liquidation) and of a new entity called the European Opportunities Fund. According to the most recent Financial Statement filed by CBp Carbon Industries Inc, on the pinksheets.com website for the period ending March 31, 2009, available capital has decreased from USD $38 million to USD $5 million. The company's only existing facility is in Cyprus and it is not yet operational.