American Recycler, April 2009 - WeRecycle! files Chapter 11 bankruptcy protection

APRIL 2009

WeRecycle! files Chapter 11 bankruptcy protection

WeRecycle! Inc., (WeRecycle), a Connecticut electronics recycler, announced that it has filed a petition to restructure under Chapter 11 of the United States Bankruptcy Code.

Mick Schum, P.E., president of WeRecycle!, said, “We have grown tremendously over the past several years, but the unprecedented downturn in the economy and the subsequent credit crunch created liquidity problems and made it impossible for us to raise the capital needed to fund our continuing expansion.”

The company also announced it has received a proposal for investment by Hugo Neu Corporation (HNC) that is intended to allow WeRecycle to continue its growth both during and after the restructuring process.

Subject to bankruptcy court approval, Hugo Neu’s plan would provide interim resources, if necessary, to help finance WeRecycle’s reorganization. Under the proposal, Hugo Neu Corporation would acquire a controlling interest in the business of WeRecycle and make investments in technology and downstream recycling processes.

WeRecycle anticipates no job losses during the restructuring process.

John L. Neu, chairman of Hugo Neu Corporation, said, “We were looking for cutting-edge electronics recycling companies in which to invest and reached out to WeRecycle because we believe they are the best.”