Edmonton paper recycling company files for bankruptcy

EDMONTON (Scrap Monster): Greys Recycling Industries, located at the Edmonton Waste Management Centre has filed for bankruptcy. The facility that had received several millions as investment from the City has cited slumping product sales, overdue rent payable and poor product quality as the key reasons that contributed to the insolvency.

The facility had been operating on the City property on lease. The City had invested nearly $9.4 million in land, buildings and equipment in 2009. An additional investment of approximately $2 million was made in 2014 towards assisting the company in procuring new equipment towards improving its product quality. As per agreement, the company was to pay back to the City through lease payments.

According to documents filed in the Edmonton Court of Queen's Bench, the company cited several reasons that contributed to insolvency. The sharp drop in sales has led to shortage of cash. The drop in sales is led by the poor quality of paper products, which in turn has impacted the revenues. Moreover, the company owes huge payment to the City in terms of overdue rent. Greys Recycling owes over 1 million to the City towards rent, taxes and waste water hauling charges.

As per bankruptcy documents, the company owes $9,775,731 to creditors.

Meantime, Mayor Don Iveson expressed disappointment that the company was not able to benefit from the best-in-class equipment supplied to it as part of plans to improve product quality. The City owns the assets including the building that can be re-purposed if necessary, Iveson added.

Sitting on 7 acres in the Edmonton Waste Management Centre, the Greys Recycling Industries facility included a 50,000 sq. ft. dome housing the paper recycling plant and a second 10,000 sq. ft dome for glass recycling. These domes were connected by office block.