Waste Systems International

Situation

WSI was a public regional waste management company which had expanded rapidly through various “roll up” acquisitions. During 1998 and 1999, WSI acquired seven transfer stations, four landfills and one recycling plant located throughout the Northeast and Mid-Atlantic States, in addition to acquiring dozens of trash collection routes. These acquisitions were largely financed through bond issuance and other unsecured borrowings. Failure to efficiently integrate these new assets had led to a change in senior management and a liquidity crisis when Gordian Group was engaged by the WSII’s Board of Directors to advise on the restructuring of the company’s capital structure.

Engagement

Gordian Group served as financial advisor to the company in connection with its successful plan of reorganization. Gordian Group first assisted WSI in addressing the time-critical liquidity issues, and then was instrumental in: (i) developing and exploring various restructuring alternatives and capital structures, (ii) advising the Company’s Board of Directors regarding restructuring alternatives, (iii) negotiating the Company’s plan of reorganization with holders of the various claims and interests.

Outcome

WSI’s plan of reorganization provided for compromise of more than $100 million in debt through cash payments funded by WSI’s controlling shareholder who retained control of the reorganized business after the reorganization was approved.