Everett Daily Herald, April 26, 2015

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NEPAL QUAKE: Death toll tops 1,800 n Everest base camp hit by avalanche n Washington climbers are on mountain B3

SUNDAY, 04.26.2015

Second verse, same as the first

EVERETT, WASHINGTON

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What happened to

MICROGREEN?

Lawmakers’ special session agenda includes the same goals as the regular session: budget, school funding and a transportation package. By Jerry Cornfield Herald Writer

OLYMPIA — State lawmakers are returning Wednesday for a special session with pretty much the same to-do list they had when they arrived in January for the 2015 regular session. Their top task, and one that’s stymied them for weeks, is passing a new budget before July 1 to keep state government operating for the next two years. Gov. Jay Inslee is to meet with budget negotiators from both chambers Monday to try to reboot the conversation. “We need to get cracking,” he said. Lawmakers know the budget must put a substantial sum of new money into public schools if they hope to avoid sanctions from the state Supreme Court. Justices found them in contempt last year for the state’s failure to pay its share of the costs of running schools and paying teachers. The court expects a progress report this week. Lawmakers also want to pass a See SESSION, Page A5

Classified . . . . . . . . . . . . . .E3 Crossword . . . . . . . . . . . . .D5 Dear Abby. . . . . . . . . . . . . .D5 Entertainment . . . . . . . . . .D4 Horoscope . . . . . . . . . . . . .D5 Lottery . . . . . . . . . . . . . . . .A2

DAN BATES / HERALD FILE 2012

MicroGreen’s President and CEO Tom Malone (left) talks with production associate Joe Poslusny and process engineer Blake Ragland on the factory floor in 2012. The men were working on a cold cup product.

Complex ownership structure of the innovative producer of eco-friendly cups discouraged new investors By Dan Catchpole Herald Writer

ARLINGTON — By all appearances, MicroGreen Polymers looked like a company poised to blow up. Its 8-ounce InCycle coffee cup promised to change the food packaging industry. The cups would be cheaper, more durable and more eco-friendly than traditional foam or coated paper cups. Investors put about $80 million into

the company. Major airlines were serving coffee in the cups. And MicroGreen had won a pile of prestigious industry honors. But behind the scenes, the Arlingtonbased company was running out of time — and money — to turn a profit. A convoluted investment structure discouraged new investors, which put existing backers on the hook to keep writing checks. Ultimately, one investor, the Confederated Tribes of Grand Ronde, Oregon, kept the company running the past year. But the tribes also reportedly blocked

efforts to clean up the investment structure, which would have made it easier to bring in new investors. In January, the tribes pushed out MicroGreen’s longtime chief executive officer, Tom Malone. In the following weeks, a once-promising company came undone, leaving 163 employees looking for work. The Grand Ronde Tribes foreclosed on the assets, which they plan to sell off. See MICROGREEN, Page A6

Success . . . . . . . . . . . . . . . .A8 Obituaries. . . . . . . . . . . . . .B4 Viewpoints . . . . . . . . . . . . .B7

PLUGGED IN

GIFT OF HOPE

TOUCHING BASE

The LEAF: What it’s like to charge up instead of fill up. Good Life, D1

Survivor meets bone marrow donor who made it possible. Local, B1

In fight for health, coach finds solace in his game. Sports, C1

Drab 60/48, C10

SUNDAY

VOL. 115, NO. 74 © 2015 THE DAILY HERALD CO.

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