Waste group must share fire insurance with creditors
ASSET and Land Group, the waste recycling firm whose Salford depot burned down several weeks ago, must pass insurance payments from an earlier fire in Stockport to creditors.
According to a document detailing an agreement it reached through a five-year company voluntary arrangement (CVA) in November, any insurance cash it receives over £2m must be passed to creditors. The first £2m can be used “exclusively for the benefit of the business”.
The claim relates to a serious fire at its Junction 25 plant at Bredbury Industrial Estate in August that required 50 firefighters to bring it under control.
Seven months later a fire started at its Salford depot in Duncan Street which is used to shred and bale around 100,000 tonnes of paper, wood, plastic and textiles a year. Eight fire engines attended the blaze which led to the temporary closure of the nearby Manchester to Liverpool railway line.
The CVA document, prepared by FRP Advisory, does not disclose Asset and Land’s total debts but said creditors agreed to receive 58p in the pound.
The condition regarding insurance was stipulated by one creditor, HM Revenue & Customs, which also said Asset and Land must pay £1.3m over the the first three years, and make further monthly payments over two years that total the sum paid in the third year. If the £1.3m is divided equally over three years the total payment will be £1.7m.
Asset and Land Group was founded by Barry Kilroe in 2008 following the management buyout of The KDC Group, of which he was the majority shareholder.
FRP Advisory declined to comment on the case and Mr Kilroe could not be reached at the firm’s Stockport headquarters.
