Well, here's news. Don't know what it means, but my guess is nothing good --- if the sale of assets covers everything, then there's nothing left but cash, and probably not enough to pay off creditors. Bye bye.
- Charles
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GUTTENBERG, N.J., July 1 /PRNewswire/ -- KTI, Inc. (Nasdaq: KTIE)
announced today it has signed a definitive agreement to acquire the assets of Prins Recycling Corp.
Prins, which is currently operating as a debtor in possession in Chapter 11 proceedings under the bankruptcy code, processes and markets approximately 25,000 tons per month of post consumer recyclables at state-of-the-art high capacity plants in Boston, Newark and Chicago. The closing of the purchase is
subject to receipt of all necessary approvals from the bankruptcy court which is expected to occur around October 1, 1997.
The agreement calls for KTI to purchase most of Prins assets for $13.1 million in cash and notes and the assumption of $500,000 in trade payables.
At the height of its operations, Prins generated approximately $80 million in annual revenue. Until the purchase is completed, Prins continues to operate its facilities at its historic levels.
KTI President and Chief Operating Officer Martin J. Sergi, said, "This acquisition enables us to add additional municipal recycling programs to our comprehensive solid waste disposal services. We are strengthening our investment in the recycling industry at a time when the industry has begun to restructure itself and when commodity prices are near an all time low. We believe this gives us a solid financial foundation for taking this step and that this will put KTI in the forefront of the recycling industry consolidation."
KTI is a 15-year-old company that operates an integrated waste handling business for municipal and specialty wastes. The company owns two waste-to-energy facilities in Maine which convert non-hazardous solid waste from residential, commercial and industrial sources into electric power. KTI also has developed and operates a wood waste processing and recycling facility in Lewiston, Maine. These facilities represent 60% of Maine's disposal capacity.
KTI also owns a 14-megawatt power plant in Telogia, Fla. which converts biomass waste into electricity for sale to Florida Power Company; a majority interest in America's only commercially operational municipal waste ash recycling facility in Nashville, Tenn.; a 400,000 ton per year wood chip mill in Cairo, Ga.; a plastic recycling plant in Tuscaloosa, Ala. and a Maryland company specializing in marketing recycled plastics.
SOURCE KTI, Inc.
CO: KTI, Inc.; Prins Recycling Corp.
ST: New Jersey
IN: ENV
SU: TNM |
