Cision PR Newswire

ATLANTA, Sept. 25, 2024 /PRNewswire/ -- CWI Cherokee LF LLC ("CWI") is pleased to announce the successful resolution of its Chapter 11 bankruptcy, including full recovery for its secured and unsecured creditors. On August 15, 2024, the United States Bankruptcy Court for the Northern District of Georgia, Atlanta Division, confirmed CWI's Bankruptcy Reorganization Plan. With the expiration of the official appeal period, the plan is now finalized. Notably, all secured and unsecured creditors have been paid in full - an outcome that is almost unheard of in the context of Chapter 11 bankruptcy.

On March 7, 2023, CWI, the operator of the Cherokee Landfill (Cherokee, AL), Shoals MSW Transfer Station (Tuscumbia, AL), and Huntsville Transfer Station (Madison, AL), filed for Chapter 11 reorganization to protect its assets and address creditors' claims after the landfill was temporarily closed due to leachate levels.

Leachate disposal is a critical aspect of landfill operations. The landfill project was financially impaired when local wastewater treatment plants would not accept Cherokee's leachate for treatment due to unregulated low level PFAS constituents. CWI could not secure any disposal options with other publicly owned treatment works and was relegated to shipping the leachate over 135 miles for final treatment.

In October 2023, as part of the bankruptcy proceeding, CWI sold its leasehold interest in the Cherokee Landfill and Shoals MSW Transfer Station to Tri Cities Solid Waste Disposal Authority. The transaction was valued at over $28 million. 

Separately, Steve Witmer, principal owner of CWI, sold his Huntsville Transfer Station to Evergreen Environmental Partners. The two transactions combined enabled CWI to proceed with its reorganization plan that paid its creditors 100%.

Witmer, a 30-year waste industry veteran, concluded, "Leachate treatment at local wastewater plants is essential, especially when the host community significantly benefits from the landfill through lower disposal costs and tonnage royalties. Refusing to treat leachate while reaping the financial rewards from a landfill is unsustainable and ultimately jeopardized the Cherokee project. This issue is a nationwide challenge for landfills, and I am committed to helping the waste industry reshape the national conversation, which has so far been disingenuous and unfair to an industry that provides critical infrastructure for our citizens, businesses, and industries".

This remarkable result is a testament to the diligence and commitment of everyone involved in the bankruptcy process. Such a comprehensive resolution speaks volumes about the strength and integrity of the reorganization, setting a new standard for how bankruptcies of this nature can be resolved.

B. Riley Securities acted as financial advisor to the Debtor.

For further information, please contact Steve Witmer at switmer@cwienterprises.com.

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SOURCE CWI CHEROKEE LF LLC