Trash Hauler Hiltz Waste Disposal Seeks Bankruptcy Protection

by San Antonio Attorney

Hiltz Waste Disposal, a contractor for trash and recycling based in Gloucester, England, suddenly stopped servicing 9 communities and sought for Chapter 11 bankruptcy protection, which would allow it reorganize while preventing its creditors from pursuing the company for its debts.

However, a community has sued Hiltz over misrepresentation of its financial state and assessments, and then causing a public health crisis by hastily ditching its contract and obligations.

Hiltz dropped its services to several communities, including Marblehead, Manchester, Swampscott, Wenham, and Hamilton, Wenham, Swampscott, and Marblehead,  leaving the public officials jostling to get a replacement— and also shelled out more money to remove the uncollected trash.

Gloucester reportedly terminated its contract with Hiltz since the company failed to provide a performance bond last Aug. 1.  However, the waste disposal operator’s services were not supposed to end until Sept. 31.

The company filed for bankruptcy on Sept. 7, listing $3.8 million in secured debts, and over $1 million in unsecured debts.

Hiltz’s biggest creditors are businesses that also provide trash and recycling services.  It owes $236,604 to Wheelabrator Technologies, $247,930 to Allied Waste Services, $159,262 to Covanta Energy, and $59,237 to Casela Waste Systems and Casella Recycling.

The bankruptcy papers also reveal that Hiltz has been struggling for two years now.  It was also disclosed that company founder Donald Hiltz has been ill.

Deborah Hiltz assumed running the operation of the company last year.  However, the business’ financial problems continued.

The company notified its municipal customers that it will cease its operations before it started the process of filing bankruptcy.  The filing shows that Hiltz ceased providing its services to municipalities on Aug.  31.

The company also discharged 30 trash collectors, as stated in the filing.  The remaining staff took lower pays, the filing shows.

A meeting of creditors involved in the bankruptcy is expected to take place on Oct. 19.  A Chapter 11 bankruptcy requires a debtor to propose a repayment plan for creditors while the business continues to operate.

Leave a Comment

Previous post:

Next post: