EnviroSolutions opens pre-negotiated Chapter 11
EnviroSolutions of New York, LLC and 22 affiliates opened Chapter 11 in the Southern District of New York, with EnviroSolutions of New York filing its voluntary petition on March 10, 2010 source filing. CFO Marc Bourhis described the group as a vertically integrated solid-waste collection, transfer, disposal and recycling business operating in the Northeast and Mid-Atlantic, with three landfills, four transfer stations, three collection/hauling operations, about 332 full-time employees, 2009 revenue of roughly $134.25 million and a 2009 net loss of roughly $29.33 million source filing.
The case started as a pre-negotiated deleveraging. Bourhis reported about $275.9 million of long-term debt, including about $210.9 million of senior loan obligations, $23.3 million of second-lien notes owed to the Big Run Sellers, and $41.7 million of senior subordinated notes owed to Northwestern Mutual; the debtors entered a March 9 restructuring support agreement with lenders holding about 74.8% of the senior loan obligations source filing. The first-day financing request sought a $30 million DIP, with $20 million available on an interim basis, and the final order later approved up to $30 million plus cash-collateral use source filing source filing.