Community Eco Power

DEBTORS AND THEIR BUSINESSES

The Debtors include the following companies that process approximately 650 tons per day of municipal solid waste:

• Community Eco Power, LLC
• Community Eco Pittsfield, LLC
• Community Eco Springfield, LLC

These companies work together to combust municipal solid waste to produce steam and electricity. This alternative power is then used to run the plants, sold to customers, or placed for sale within the Northeast U.S. Electric grid. The Debtors’ customers include municipalities in western Massachusetts, as well as national players in the waste industry, including Waste Management, Inc., Casella Waste Systems, USA Waste, and Crane Company.

This information comes directly from the CEO of the Community Eco Power, Richard Fish, in a declaration that is filed with the Court in the bankruptcy case. The Declaration is available publicly. Reach out to us and we can provide you with a copy for free.

VITAL FINANCIAL INFORMATION IS YET TO BE FILED

In their petitions for bankruptcy protection, the Debtors indicated that they have between 100 and 199 creditors. In CEO Fish’s declaration, he states that the Debtors have approximately $6.65 million in secured debt. The amount of unsecured debt has not been discussed yet.

The Debtors have some time before they have to provide detailed financial information, including a breakdown of all of their creditors and the amounts the Debtors believe they owe to each separate creditor. July 28th is currently set for a debtors’ exam, known in bankruptcy as a Section 341(a) meeting of creditors. At this exam, which will be held entirely by telephone, creditors can attend themselves or through counsel and ask the Debtors virtually anything about their finances, why they are in bankruptcy, and how they plan to repay creditors.

A LOT OF UNKNOWNS REMAIN

The Debtors have not provided much information about why they are in bankruptcy, what their plans are going forward, or how they intend to achieve any goals they have in the bankruptcy process. While declarations like the one filed by CEO Fish usually give substantial background information on why a company has filed for bankruptcy, Fish’s declaration is relatively vague.

Fish states: “Prior to the Petition Date, the Debtors diligently explored a range of options to address their ongoing challenges related to maintaining sufficient cash flow to satisfy their debt and operational obligations. Ultimately, due to cash flow concerns and ongoing disputes with certain secured and trade creditors that threatened continued operations, the Debtors, together with their advisors, determined to commence these chapter 11 cases to stabilize the Debtors’ balance sheets and optimize the value of their estates for the benefit of all parties in interest through a chapter 11 debt restructuring or potential asset sale.”

Creditors have a right to be involved and get information related to the progress of the case and prospects of repayment of pre-petition debts. If you are a creditor and have questions, please contact PRLT.