EWC creditors agree to debt deal
MERSEYSIDE waste and recycling group Environmental Waste Controls has reached a deal with creditors who are owed around £4m.
It fell into administration last month but creditors have agreed to a company voluntary arrangement (CVA) which establishes a debt payment plan for a debtor.
The terms of the CVA were not disclosed.
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 and provides waste disposal services to corporate customers.
The joint administrator, Grant Thornton’s Les Ross, 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.
“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.”
According to the administrator the company was profitable but encountered cash flow difficulties following a number of non-trading cash costs.
The company is owned by William and Julia Edwards.
