Gregory Canyon
bankruptcy dismissed
What it means
to landfill plans is unclear
By J. Harry Jones, March 24, 2014
SAN
DIEGO A bankruptcy proceeding involving the company
behind the long-planned Gregory Canyon landfill has been dismissed
by a judge because the company failed to retain an attorney
or file any necessary paperwork in court.
The
bankruptcy proceedings had been initiated Feb. 12 by three
creditors who were also some of the companys original
investors. The judge ordered the company to turn in certain
documents within 14 days of the filing, but no paperwork was
ever filed. Last week, a meeting was scheduled on the petition
at the downtown courthouse in San Diego and no one representing
Gregory Canyon showed up.
An
emergency motion to dismiss the case was made
Thursday and was granted by the court on Friday. No one opposed
the dismissal.
What
the action means to the future of the landfill is unclear.
Jim Simmons, project manager with Gregory Canyon Ltd, declined
to comment Monday.
When
the initial filing was made in February, company spokeswoman
Nancy Chase said the move was designed to manage debt so the
company could attract new investors and push the project through
its final permitting stages.
On
Monday, Chase characterized the end of the case as a good
thing.
The
dismissal of the bankruptcy means were working on new
financing, she said. Were working on other
opportunities.
She
said she expects there will be a financing development in
about a months time.
Irwin
Heller a Boston attorney and one of the projects
original investors, who claims he is owed $1.55 million by
the company declined to comment Monday and referred
questions to Simmons.
Its
been known for some time that Gregory Canyon has been hurting
financially. It owes at least $320,000 to the countys
Air Pollution Control District, which announced in January
it was suspending work on the landfills permit application
because the company was past due on its hefty bill.
Robert
Kard, an official with the Pollution Control District, said
Monday hes not sure what to make of the bankruptcy dismissal.
He said the district hasnt received any money from the
company and isnt doing any work on the permit until
it does.
Six
months ago the U.S. Army Corps of Engineers which has
been processing another permit application for the landfill
for several years suspended working on the project
because the company had never gotten back to the Corps with
additional research and engineering studies they had been
asked to provide.
Two
attorneys who have been busy fighting the landfill plans for
years Walter Rusinek on behalf of the Pala Indians
and Everett DeLano on behalf of an environmental group called
RiverWatch said Monday they are also unsure what the
dismissal of the bankruptcy petition means.
DeLano
said Gregory Canyon seems to be in a state of disarray.
All
I can tell you is this is not a company I want operating anything,
let alone a landfill near a sacred site and a river and all
the rest of it, he said.
Earlier
this year Chase said the company has spent more than $62 million
on its efforts to build the landfill which have been ongoing
for nearly two decades. The landfill is proposed for a site
south of state Route 76 about 3 and 1/2 miles east of Interstate
15 near the Pala Indian Reservation.
The
project has been controversial since first proposed.
The
developers say the North County needs its own landfill and
that it will be a state-of-the-art facility with a liner system
that will make leakage impossible.
Opponents
say the landfills proximity to the San Luis River and
underground water supplies makes it an environmental disaster
waiting to happen because no dump is safe.
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