[OKRA] NRC vote for merger with KAB fails

[Shields, Susie]

NRC LIMPS INTO CHAPTER 7 (from Resource Recycling E-News)

   On the heels of the failed vote
<http://rs6.net/tn.jsp?et=1102691358705&s=8167&e=00132d4yMIUDRl_8hiB4wSZ
3hDCcu1KPL3utUNZWAbIm6_TIp-z6G81IY35f-4ImCQ46kFuDjeS_pFLPke_TOl3F3YXwQ-K
WnYjEyjPCf19gc42G94ynKRKChJ5QKFQpFWsCC4CLldOaay-TQXv-1uQt6IxQEQU151ouoEA
VA3amLYy878uPXI0wvh1CysKHmgvhu_7sFckl65Bm_ru2lOSZw==>  to merge with
Keep America Beautiful, the National Recycling Coalition Board voted
today to pursue a Chapter 7 bankruptcy filing, ending the organization's
30-year run as the nation's largest non-profit recycling advocacy
organization.
   "This really is a very sad day for an organization that doesnt get
nearly the attention it deserves," said Bob Gedert, executive director
of the California Resource Recovery Association and NRC Board member.
"We need to acknowledge the truly heroic efforts of everyone who worked
so hard to make this organization work as long as it did." 
Despite reluctantly voting in favor, Gedert had advocated a plan to
bring the organization into Chapter 11, in order to maintain bargaining
power and confidence with creditors and donors. 
However, the vote to pursue a Chapter 7 filing is not the end of NRC's
money problems. At the end of the September 2nd business day, the
organization had approximately $619 in cash on hand. With legal fees
associated with pursuing a filing in the tens of thousands of dollars,
some board members have offered to personally donate the funds necessary
for the organization to move into bankruptcy court. 
Of additional concern was the fate of America Recycles Day. Just prior
to the vote to pursue the bankruptcy option, the board unanimously voted
to not accept an offer from KAB to accelerate the final payment of
$50,000 on the advice of legal counsel. Several board members were
concerned that America Recycles Day could be undervalued in the current
KAB contract, thus the board will try to pursue a higher value in
bankruptcy court. 
In the comment period following the conclusion of the board vote, some
members expressed hope that the organization might be reborn following
the bankruptcy process. 
"It might be easier to build a new organization and a new donor base if
we are not saddled by [NRC's] obligations," mused David Struhs,
International Paper's vice president of Environmental Affairs. 
Outside the board, reactions differed: 
"The Board is saying that there is hope to rebuild NRC, but I don't see
it happening once this message is sent out," said Amy Perlmutter of
Perlmutter Associates. "I can't imagine anyone wanting to donate time or
energy to an organization that is dissolving. I do not understand why
they couldn't put [the decision] off for 30 days to find a pro bono
attorney to file Chapter 11, or to try and implement some of Bob
[Gedert's] plan."



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