Plastic2Oil Inc (PTOI)

[loanranger]

"JBI hasn't made a dime from Florida operations so how the hell are there damages?"

Good Question.

In terms of assessing damages the first thing that a court would expect a defendant to do would be to establish that there was an actual loss and quantify it. The plaintiffs don't do any quantifying in their Complaint. Their settlement demand letter, however, says:
"Based upon your company's own pro forma calculations, this would have resulted in no less than $55,860,000.00 in net income to AS PTO's licensees, based upon $2,293,000.00 in net annual income per unit."
If the case goes forward they'll need to provide the document that reflects JBI's pro forma calculations. I expect that any documents like that would have accompanying language indicating that such projections are not guarantees, but the court could absolutely use them as a frame of reference for the purpose of damage assessment.


In the alternative the court could require the defendants to provide the performance required by the contract. It could close the State of Florida to any licensees that are not developed by AS PTO, effectively shitcanning the RKT/Jacksonville project. It could require Plastic2oil Land, a wholly owned subsidiary of JBI, to finance the start-up of the sites developed by AS PTO and provide the processors, etc. that are required to render those sites functional.
But wait! The court can't make the defendant do things that it can't physically do. And Plastic2oil Land/JBI still can't provide equipment that meets the standards called for by the "Validation" definition in Exhibit A of the fully executed Area Development Agreement. The court isn't likely to look kindly on a defendant that still can't perform on the terms of a contract three and a half years after they enter into it.

It would be interesting to know why the defendants didn't respond to "Count 1" of the complaint, Breach of ADA.


ps. Per the unreliable SAIC executive summary, based on assumptions provided to them by JBI, the least that can be expected of a site consisting of three processors is:
"In a case where the the yield is 40 percent and uptime is 75 percent, the estimated average EBITDA is approximately $13.4 million per year."