Failed White Recycling owed £12m

THE recycling company owned by former Manchester City star David White and his brother left debts of more than £12m, it has emerged.

Family-owned White Recycling blamed a fire in Eccles last autumn which disrupted operations for three weeks, and a host of regulatory problems for the failure of the business.

All 80 staff lost their jobs when the Salford company, which had annual revenues of more than £12m last year, was placed into liquidation last month.

Creditors of the business were left fuming when neither David White nor his brother and co-director Steven, attended a meeting with them as required under company law.

It is understood the Whites’ lawyers informed liquidator Begbies Traynor that the directors were unwell and unable to attend the meeting in Manchester.

Paul Stanley, joint liquidator said: “In 30 years it is only the second or third time that directors have not attended. There were a lot of creditors there wanting answers so it was quite an hostile atmosphere.

“There was some dispute from the creditors over the information given by the directors, and I estimate the total deficiency at over £12m due to the cost to landlords of having to clean up sites.”

Among the creditors are Peel Group, whose subsidiary, Ship Canal Properties is claiming £3m to remediate land in Eccles used by the group to store hazardous waste and landfill.

In the Statement of Affairs David White says the directors had looked to enter a Company Voluntary Arrangement as a means of restructuring  the business, but this had failed after the Environment Agency withdrew a licence to trade at its site in Eccles.

“Due to the company’s inability to protect and secure the sites and comply with regulatory requirements the directors convened the necessary meeting to place the company into liquidation at short notice to allow the liquidator to disclaim the sites.”

As a result of the sites being disclaimed the responsibility for the land passes to the owner of the property.