Sept. 2 -- The National Recycling Coalition´s Board of Directors voted today to file for Chapter 7 bankruptcy, which would result in a court assuming control of the organization and supervising a plan to liquidate assets to satisfy creditors.
Several board members said they hoped NRC members would find some way to revive a similar coalition to keep the message about the benefits of recycling before the public.
Some coalition members had asked for 90 to 120 days to attempt a rescue plan involving solicitation of donations and negotiations with vendors to extend the time the NRC would have to settle debts.
However, the board said that on the advice of their attorney, they had to act now.
The coalition´s bank account had run dry, with only $619 in a checking account and obligations possibly exceeding $1.5 million.
The Washington, D.C., office will be closed on Friday, but the organization lacks money to pay movers to put furniture in storage and it lacks the funds to pay legal and accounting fees associated with filing for bankruptcy, according to statements by the staff and board members. However, some board members expressed an interest in donating personal funds to help cover the costs.
The NRC -- a 31-year-old organization -- is the largest national nonprofit group dedicated to advocating recycling, waste prevention and recycling.
NRC members recently rejected a proposed merger with Keep America Beautiful. While a majority of NRC members voting cast ballots in favor of the merger, a two-thirds majority was necessary for passage.
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