News - North West

EWC creditors approve rescue plan

Merseyside waste recycling business Environmental Waste Controls (EWC) is being returned to its director William Edwards after its creditors approved a rescue plan.

Insider last month revealed administrators from Grant Thornton had been appointed to the company after it was hit by unsuccessful litigation and a contract loss.

The group's unsecured creditors, estimated to be owed £4m, have now agreed to a company voluntary arrangement (CVA) – which will allow EWC to pay them back over a fixed period.

The move has safeguarded 267 jobs at the business' head office in Knowlsey and sites in East Kilbride and Leicestershire.

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

He 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 it's gratifying for my team to be able to deliver this rescue."

North West City View - news, analysis and features on the region's key cities - click here
Create your free online surveys with SurveyMonkey, the world's leading questionnaire tool.
 
Powered by Chapter Eight
[X] Close