Phenol and formaldehyde removal was tested in two different wastewater samples obtained from a local phenol-formaldehyde resin manufacturing company using a strain of Rhodococcus erythropolis isolated in our laboratory from a phenol polluted site on the Gemika estuary. This strain is capable of growth on phenol as the sole carbon and energy source, and to remove formaldehyde completely both from synthetic and industrial wastewater. COD and toxicity decrease were assessed as indicators of wastewater cleanup, and reduced to different extent depending on the wastewater sample treated. To identify the recalcitrant organic compounds that were not biodegraded, gas-chromatographic (GC) analysis was performed before and during treatment with biomass. Among the compounds identified are reactants, intermediates, and byproducts of the resinification reaction.