YOUNGSTOWN, Ohio – The receiver managing the business affairs of troubled district utility SOBE Thermal Energy LLC has requested that the Mahoning County Court of Common Pleas approve sanctions against the company’s owner, David Ferro.

John C. Collins has asked the court for instructions and to assess sanctions against Ferro for “interfering with the receivership,” according to documents filed with the court.

On June 24, Ohio Environmental Protection Agency Director John Logue issued a revocation of SOBE’s initial permit – approved in February 2024 – to install a pyrolysis boiler system at the plant’s site at 205 North Ave. The process would have included using recycled tire chips to produce heat that would power boilers at the plant. These boilers would then provide steam heat to 23 customers downtown.

“The receiver made a determination that installation of that system was not feasible,” according to the latest filing. “Accordingly, the receiver requested that the permit be revoked.”

Ferro appealed the Ohio EPA’s ruling the same day, requesting that the agency reverse the decision, records show. 

“Without any authority whatsoever, David Ferro, purporting to act on behalf of SOBE, filed an appeal of the revocation,” court papers say. Also, the motion stated that the appeal is “unauthorized and without merit but will cause the receivership to incur further expense.” Collins has requested the court “issue sanctions against David Ferro for the costs involved in this motion” and to deny his appeal.

Ferro’s Plan

SOBE’s pyrolysis plan in 2024 met with opposition from the city and its residents, as many cited concerns over environmental and safety issues. That year, the city passed a moratorium on the project, preventing it from moving forward. Meanwhile, SOBE fell behind on its lease obligations to maintain a boiler it was using to provide service to customers and also fell behind on its own utility payments to Enbridge Gas.

In September 2025, the Public Utilities Commission of Ohio found that SOBE was incapable of providing utility services to its customers and appointed Reg Martin as SOBE receiver to manage all aspects of the business. In September, the single boiler under lease was repossessed for nonpayment, leaving SOBE unable to supply heat during the autumn months. Three new boilers of various horsepower were then secured to provide steam heat but were compromised by problems that led to a shutdown of services during some of the coldest months in recent memory. 

Martin resigned as receiver in February, and the court approved Collins as his replacement.

The court order authorized Collins to “manage, operate, and have complete and exclusive charge and control of all the assets of SOBE, including intangibles,” according to the latest filing. “Finally, such order prohibited claimants and parties-in-interest from doing any and all things whatsoever to interfere with the receiver in the discharge of the receiver’s duties in this proceeding.”

Although the company is under the control of a receiver, it has not filed for bankruptcy protection, and Ferro is still listed as owner.

Two weeks ago, the PUCO approved rate hikes submitted by SOBE to cover its operational costs to operate boilers at the site.