Miami -- Hi-Rise Recycling Systems Inc. has initiated a Chapter 11 bankruptcy case and signed a letter of intent to sell its solid waste equipment division to HRS Acquisition Co. for $31 million plus the assumption of debt.
The transaction will include the sale of nearly all assets and assignment of specific liabilities and contracts of DeVivo Industries Inc., Hesco Sales Inc., United Truck and Body Corp., Bes-Pac Inc., DII Acquisition Corp. and American Gooseneck Inc. According to Hi-Rise's acting CEO James Ashton, all divisions will continue as independent operating entities.
The company's solid waste division manufactures containers, balers, compactors, roll-off containers, transfer trailers, roll-off hoists and other specialized solid waste equipment.
Hi-Rise's senior lender has provided the company with a credit, which will let Hi-Rise continue its operations during the bankruptcy proceedings.