Bankruptcy News

Weil Changes Places In Changing World Chapter 11, The country’s go-to bankruptcy law firm has found itself on the wrong end of a company’s collapse for once. Weil, Gotshal & Manges, one of the leading law firms for representing companies in bankruptcy, is a creditor in the Chapter 11 case of biodiesel company Changing World Technologies Inc. The New York law firm, owed about $830,000, holds a $1 million promissory note for payment of legal fees and expenses tied to the company’s lackluster initial public offering in February. The offering failed after investors didn’t bite. Bankruptcy watchers might chuckle at the sight of Weil, famous for its work representing WorldCom and Lehman Brothers, sitting on the other side of the table fighting to get paid. (Wall Street Journal, 03/09/2009)

Changing World Technologies is being represented by Brendan M Scott of the firm Klestadt & Winters LLP.

The Chapter 11 case is pending in the U.S. Bankruptcy Court for the Southern District of New York under case number 09-10977.

Stockholders, Officers and Directors pp 70-73, 90-93
Changing World Technologies, Inc.
460 Hempstead Ave.
Hempstead, NY 11552
Phone: 516-486-0100
Fax: 516-486-0460

Cities Need Clean Air

Cities need clean air, an article by Joe Ellis, The Joplin Globe, Sunday, March 8, 2009, says it all. "When people experience an affront, an indignity or a crime, it’s expected that they will stand up for their personal and civil rights. When a group of people — say a community or an entire city — suffers those same assaults, it’s perfectly acceptable (and expected) that the group has every reason and right to redress the situation. With Renewable Environmental Solutions laying off all but a skeleton crew, and with Changing World Technologies, its parent company, announcing that it will go into Chapter 11 bankruptcy for reorganization, there is hope that a long-standing affront to Carthage residents is on its way to being rectified. It’s time that situation was made right. At this point, no one knows if the emissions from RES have any adverse health effects. Doctors tell us that being unable to comfortably breathe deeply in itself damages the lungs. Someone once said, “A livable city needs breathable air.” That’s a personal and a civil right worth fighting for."

Bankruptcy

KJFX Channel 14 television reports (Wednesday, March 4, 2009, 9:00 pm news) that Renewable Environmental Services, LLC's parent company, Changing World Technologies LLC, has filed for Chapter 11 Bankruptcy. Too bad.

Changing World Technologies Inc., based in West Hempstead, N.Y., filed for Chapter 11 protection Wednesday in the U.S. Bankruptcy Court for the Southern District of New York. In a news release, the company, which owns the Renewable Environmental Solutions LLC plant in Carthage, said it was trying to reorganize its business and find new financing "to fund its operations going forward and to move ahead with its expansion strategy." Forbes 03/04/2009

Reports: RES May Close

The Carthage Press, Tuesday, March 3, 2009, reports that there are rumors around town that RES is closing. Renewable Environmental Solutions (RES) is not speaking to the media. RES's parent company, Changing World Technologies, LLC is not talking to the media. Here is what is known: (1) Butterball is no longer sending poultry affluent to RES for processing, effective yesterday (March 2, 2009). (2) The Joplin Workforce Investment Board is planning a "Rapid Response" meeting for RES employees at 10:00am Friday, March 6, 2008. Typically this is done to provide counseling, alternative employment and unemployment information for large groups of employees, being layed off. City of Carthage Manager, Tom Short, said that he had heard the rumor but had not received any official notification from RES.
Good bye.

The Joplin Globe reported, Wednesday, March 4, 2008, "Center Notified of Layoffs at RES" Three weeks after withdrawing its bid to go public in an effort to raise capital, Renewable Environmental Solutions in Carthage appears to be laying off much of its work force. Officials with the Missouri Career Center said Tuesday that they had been told of layoffs involving 49 workers at the plant that converts animal products into oil products and fertilizer. On Feb. 12, Changing World Technologies, the RES parent company, filed documents with the Securities and Exchange Commission withdrawing its bid to go public. Changing World Technologies in August launched a bid to go public in a bid to raise $100 million. The company has been dealing with lawsuits over construction and odor emissions from its Carthage plant. In addition, previous SEC filings indicate the company was losing tens of millions of dollars per year, has not been able to operate the Carthage plant at full capacity, and has experienced times when the plant temporarily shut down. The company reported a net loss of $21.8 million in 2006, followed by a net loss of $19.9 million for 2007 and a net loss of $18.8 million through Sept. 30, 2008. The company had an accumulated deficit of $117.8 million as of Sept. 30, the filings state.