Member Article

Environmental firm EWC rescued by Grant Thornton

Control of the Merseyside waste and recycling company Environmental Waste Controls is being returned to its director William Edwards following the approval of a CVA by its creditors.

The terms of the CVA agreement have not been disclosed.

Les Ross and David Riley of the Manchester office of Grant Thornton were appointed as administrators to EWC and its subsidiary Environmental Waste Control (South London Community Recycling Services) on 21 August 2013 and proposed the CVA immediately following their appointment.

The EWC group, which employs 267 people at sites including Knowlsey, East Kilbride and Leicestershire, was established in 2003 and operates household waste recycling centers on behalf of local councils as well as providing waste disposal management services to corporate customers.

Whilst the Group had consistently delivered trading profits, it encountered cash flow difficulties following a number of non-trading cash costs. The director sought the protection of the administration process whilst the unsecured creditors, estimated at c£4 million, considered the CVA proposal.

Les Ross, joint administrator, said: “The support of the creditors was overwhelming, with over 90% of those voting approving the CVA, subject to the modifications put forward by the creditors.”

Mr Ross added: “Whilst rescuing a company as a going concern is the first purpose of an administration in the insolvency legislation, it is rare that this can be achieved and its gratifying for my team to be able to deliver this rescue.”

This was posted in Bdaily's Members' News section by Simon Malia .