WASTE FIRM TO BUY G.I. INDUSTRIES STOCK.

Byline: Kermit Pattison Daily News Staff Writer

One of the nation's largest trash companies has agreed to buy out G.I. Industries, the Simi Valley-based trash hauler serving most of eastern Ventura County and struggling to recover from bankruptcy.

Western Waste Industries of Torrance has agreed to take over a majority interest of the company through a stock exchange with four members of the Asadurian family, the major shareholders and founders of G.I. Industries.

G.I. has remained under federal bankruptcy protection since August 1992. The company has more than $12 million in outstanding debts, said Michael E. Smith, chief executive officer.

Under the proposed buyout, Western Waste Industries would exchange one share of its stock for every 10 shares of G.I. Industries stock owned by Samuel, Manuel Sr., Manuel Jr. and Carl Asadurian.

The Asadurians would give up about 1.8 million shares of G.I. Industries in exchange for about 182,000 shares of Western Waste.

Lawrence F. McQuaide, chief financial officer of Western Waste Industries, said the company hopes to keep the trash-hauling contracts in Ventura County intact. He said there has been no decision on whether G.I. Industries management would change.

``The people at G.I. have done a great job,'' McQuaide said. ``That's one of the assets out there. We at Western don't want to do anything to jeopardize the contracts G.I. has. We haven't made any decisions on individuals one way or another.''

The memorandum of agreement between the two companies requires approval from a federal bankruptcy judge. The case is scheduled to be reviewed April 22 in federal bankruptcy court in Santa Barbara.

The deal marks the first time Western Waste has entered Ventura County as a major player. The fifth largest trash corporation in the nation, it already has contracts in Los Angeles, San Bernardino, Orange and Riverside Counties, said Richard Widrig, vice president for finance at Western Waste.

``It's a new area for us to get into,'' he said. ``It's right adjacent to another area we have got in the Santa Clarita Valley. It's an opportunity to expand into a new area.''

Western Waste also is preparing to merge with USA Waste Services of Dallas. The merger would make the operation the third largest trash firm in the nation with about $800 million a year in revenues, Widrig said.

Western Waste already owns about 23 percent of G.I. Industries. After the buyout, Western Waste would control 60 to 70 percent of the shares, Smith said.

Because most of G.I.'s debt is owed to Western Waste, the proposed transaction would essentially leave the buyer to pay itself back, said Jeremy Richards, a bankruptcy attorney for G.I. Industries.

Based in Simi Valley, G.I. Industries serves about 40,000 customers in Simi Valley, Thousand Oaks, Moorpark, an unincorporated eastern portion of Ventura County and part of the San Fernando Valley. The company employs about 110 people. Smith said he expects that most employees will keep their jobs.

``I would envision the customer would see no difference,'' said Smith. ``They will still have the same level and quality of service they always have.''