Hi-Rise Recycling Systems has initiated a Chapter 11 bankruptcy case so it can implement a pre-negotiated restructuring plan with its senior lender.
The company also announced that, in connection with this Chapter 11 case, it has signed a letter of intent to sell its Solid Waste Equipment Division to HRS Acquisition Co.
The sale will be for an aggregate purchase price equal to $31 million in cash plus the assumption of specified company liabilities. The transaction will consist of the sale of substantially all of the assets and assignment of specified liabilities and contracts of DeVivo Industries, Hesco Sales, United Truck and Body Corp., BesPac, DII Acquisition Corp., and American Gooseneck Inc.
The Solid Waste Equipment Division is engaged primarily in the business of manufacturing solid waste metal containers, balers, compactors, roll-off containers, transfer trailers, roll-off hoists, and other specialized equipment used for the collection and transportation of solid waste.
The sale is contingent upon and pursuant to authorization by the Bankruptcy Court under the company's plan of reorganization and other customary closing conditions and has the support of the company's senior lender.
"The Chapter 11 reorganization and the pending sale of the Solid Waste Division Assets is the best solution to a difficult problem," said James Ashton, acting CEO. "Hesco, DeVivo, BesPac, United Truck and Body Corporation and AG Products will continue as independent operating entities with an enhanced ability