South Florida paper recycler files Chapter 11 after $8M in sales dwindle

SPOKANE (Scrap Monster): Ecological Paper Recycling, which bills itself as the largest privately-held paper processing firm in South Florida, filed Chapter 11 reorganization after experiencing a big decrease in sales.

The Opa-locka-based company, also doing business as Ecological Waste Systems, rang up revenue of $7.92 million in 2014, but had just $150,000 in revenue from the beginning of 2015 to the Feb. 2 date of the filing in Bankruptcy Court. That put it on pace for about $1.8 million in revenue this year.

Jacqueline Calderin, the debtor's attorney in Miami, said the company had expanded into the waste and refuse collection service and had several contracts with Waste Management. While that business had strong revenues, it operated at a loss because of high expenses, she said.

Ecological Paper Recycling intends to sell off its waste and refuse contracts through Chapter 11 and focus on its core business of paper recycling and paper shredding, Calderin said. The company has contracts with large companies to collect their paper, process it at its plant in Opa-locka and sell it to manufacturers of recycled paper products, she said. Its case summary says it handles over 2,000 tons of paper recycling per month and has 30 full-time employees.

The company is headed by CEO Jose Flores and listed assets of between $500,000 and $1 million. JPMorgan Chase Bank is its largest secured creditor with a $2.22 million loan. The company has about $1.64 million in unsecured claims. Its largest unsecured creditors are Miami-based Ameri-Temps with $394,138, Waste Management with $334,881, and the Florida Department of Revenue with $300,000.

It was founded in 2009 and is located at 2350 N.W. 149th Street.

Courtesy: www.bizjournals.com