A recycling plant in North Bergen, New Jersey is filing for bankruptcy under Chapter 11. With assets totaling $10.5 million and liabilities at $13.6 million, the recycling plant has struggled to stay afloat in the midst of controversy. The plant has pleaded guilty to unlawful activity including illegal dumping. Their actions have resulted in approximately $700,000 in fines over safety issues.
Will a Bankruptcy Help?
The parent company of this North Bergen recycling plant has filed for bankruptcy as well. Though the parent company Eagle Recycling System is based in Florida, they also have an address based in North Bergen, New Jersey. Because a Chapter 11 Business Bankruptcy allows companies to reorganize their debts, the recycling plants are expected to keep operating and refine their practices.
The company agreed to a $500,000 fine for failing to meet federal environmental compliance. So aside from having to deal with the restructure of filing for bankruptcy, Eagle Recycling System and its subsidiaries will have to refine their environmental practices as well. The two companies employ a total of 38 people and brought in over $10.4 million in revenue throughout 2013.
While the financial matters are obviously a large part of this business bankruptcy, their recycling practices are a large factor of their current woes. For instance, a safety issue where an employee lost a finger cost the company $70,000. Another $65,000 must be spent to meet federal requirements. A fire also cost them $100,000, and Eagle Recycling owes the town approximately $150,000. Had these legal complications been avoided, this business bankruptcy might have been a different story.