DETROIT — Green Energy Renewable Solutions Inc. (OTC: EWRL) announced Thursday that the United States Bankruptcy Court for the Eastern District of Michigan has confirmed the company as the sole bidder to acquire the Davison Landfill assets of Richfield Equities LLC, a privately owned waste management company.
Richfield Equities voluntarily filed for bankruptcy reorganization under Chapter 11 on Sept. 18, 2012. The Bankruptcy Court converted the Richfield case to Chapter 7 liquidation under the U.S. Bankruptcy Code in February, 2013, and appointed a trustee to administer the liquidation of Richfield’s assets, which include the Davison Landfill.
Green Energy, acting as a stalking horse bidder, entered into an asset purchase agreement to acquire the Davison Landfill assets on April 29 for $1.4 million. No other bidders emerged, clearing the way for the sale to Green Energy, which is expected to close July 1.
The Davison Landfill, some 10 miles southeast of Flint, is the state’s second largest landfill, as defined by available airspace. With nearly 400 acres and 28 million cubic yards of available airspace, the Davison Landfill offers a useful life expectancy in excess of 35 years at current projected disposal levels. It represents one of the only two independently owned municipal solid waste permitted landfills within its geographic market and is substantially closer to the population centers and to Canadian hauling routes.
Green Energy is currently in discussions with various Canadian-based local waste collection operations and operations to accept waste at the Davison Landfill and intends to accept Canadian generated waste going forward.
“The acceptance of our bid for the Davidson Landfill by the U.S. Bankruptcy Court is a major development for our company,” said Green Energy CEO Joseph Durant. “We have secured our bid with funds placed in escrow, our financing is in place, and we are ready to move forward on this project immediately after the purchase is closed. Our merger with Cirque Energy has expanded our management team and capabilities, which positions the company to commence landfill operations within a very short time-frame. This first project in our new and expanded pipeline of development programs is a perfect fit with our company’s mission of finding waste streams, securing them, and maximizing their value.”
Roger Silverthorn, Chief Financial Officer of Green Energy added, “We are very excited by the potential scope of the Davidson Landfill project. Our plans include recycling and waste diversion which will dramatically reduce the MSW volume entering the landfill, generate revenue from the sale of high value recyclable waste, and extend its useable life by an estimated 20-25 years. We expect this project to have a positive financial impact on our company and a positive environmental impact on the region.”
Green Energy announced on May 16, 2013 that it has merged with Cirque Energy II LLC, a privately owned renewable energy development company based in Michigan. Cirque Energy, based in Ithaca, has extensive experience in the development, design, financing, construction, and operation of materials handling operations, renewable energy and traditional distributed generation power projects. Green Energy intends to change its name to Cirque Energy Inc. and intends to apply for a new trading symbol. The company will continue to trade under its present symbol, EWRL, until a new trading symbol is assigned.