x
Breaking News
More () »

New Orleans reaches multi-million dollar settlement with Metro Service Group

Metro Service Group filed for bankruptcy protection, which blocked the city from terminating its contract with New Orleans.
Credit: WWLTV

NEW ORLEANS — The City of New Orleans announced Wednesday that it had reached a settlement with Metro Service Group, which will officially end any contracts between the two groups.

As part of the agreement, New Orleans agrees to pay $3.9 million to the Metro estate, and Metro Service Group will make an asset purchase payment of $2.2 million. McCormick 101 will receive a payment of $5.8 million, and the Official Committee of Unsecured Creditors will receive a payment of $350,000.

The parties must now seek approval of the settlement terms by a bankruptcy court. Once approved, all contracts between Metro Service Group and New Orleans will be terminated.

"With these legal proceedings now behind us, we are excited to redirect our focus solely on our long-term investment in cleaning up this City holistically and now fully transition to new collection contractors who have already began delivering the long overdue increased level of service and overall quality of life residents deserve," Mayor LaToya Cantrell said. ".The City will continue to deliver meaningful results that address our garbage crisis and place the needs of our people first.” 

Cantrell signed two new city contracts for trash services in October which saw Waste Pro and IV Waste take over for Metro Service Group in large parts of the city. Cantrell said the new contracts would allow for the return of services that had been suspended since before Hurricane Ida.

Metro Service Group filed for bankruptcy protection, which blocked the city from terminating its contract with New Orleans.

Click here to report a typo.

► Get breaking news from your neighborhood delivered directly to you by downloading the new FREE WWL-TV News app now in the IOS App Store or Google Play.

Before You Leave, Check This Out