Hi-Rise Recycling Companies, Inc., announced that it has initiated Chapter 11 proceedings in Canton, Ohio in order to implement a sale of the assets of the Company, as agreed to by representatives of Hi-Rise's secured lender and its shareholder.
The Company has entered into an asset sale agreement with Wastequip Manufacturing Company, subject to the requirements of the U.S. Bankruptcy Code.
Dennis Donahue, president and CEO, stated that "We regret very much that Hi-Rise needed to file for bankruptcy. Operational disruptions resulting from increasing steel prices and selected supply shortages together with a heavy debt burden made it impossible for the company to pay all of its normal obligations and service the debt. However, we are pleased that we were able to negotiate a sale agreement that should allow the businesses to continue to operate."
Under the terms of the asset purchase agreement, Wastequip will purchase all of the inventories and most of the plant, property and equipment of Hi-Rise.
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