Judge Puts NEED Recycling Facility in Receivership

New England Ecological Development Corp., the trash hauling and recycling company run by former Johnston mayoral candidate Louis L. Vinagro Jr., has been placed in receivership by a Superior Court judge.

The action was taken Sept. 3. According to Emile Martineau, a lawyer for NEED, the decision was forced on the company because of the loss of income after the state Department of Environmental Management last month closed its waste recycling operation.

Martineau said the DEM action has cost NEED "hundreds of thousands of dollars." He said the closure has forced the layoff of 70 of the company's 200 employees.

"It was a difficult day for NEED," Martineau said. "But NEED hopes to emerge from the process a stronger company."

John Boyajian, a lawyer from Providence, was appointed receiver. He will oversee the company's operations. Boyajian said he plans to inspect the operation and talk with the DEM about the company. He declined further comment.

Vinagro, in his capacity as the majority stockholder, petitioned for receivership. According to the petition, the company is "far in arrears in payment of its obligations" and is unable to meet its obligations, including payroll.

The petition said that going into receivership was necessary to ensure that municipal trash collection will continue. The company collects trash and recyclable items, which are taken to the state Central Landfill.

The company, on Green Hill Road in Johnston, collects trash in nine Rhode Island communities: Johnston, Woonsocket, Central Falls, East Providence, East Greenwich, Burrillville, North Providence, Smithfield and Warren. The company also collects trash in Massachusetts in Seekonk and Medway.

Gail Mastradi, a spokeswoman for DEM, said the company's action would not affect the agency's actions. The recycling part of the operation will stay closed. Last week, DEM suspended its license to operate and the agency intends to hold a hearing to determine whether the recycling license should be revoked.

Officials in Johnston and Warren said they have not noticed any problems. "The guys were out there this morning, collecting trash," Johnston Mayor William R. Macera said yesterday.