Merseyside-based company Environmental Waste Controls (EWC) has been returned to its director William Edwards following the approval of a company voluntary agreement (CVA) with creditors.
Lee Ross and David Riley of the Manchester office of Grant Thornton were appointed administrators of EWC and its subsidiary Environment 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 Knowsley in Merseyside, East Kilbride and Leicestershire, was established in 2003 and operates household waste recycling centres on behalf of local councils, as well as providing waste disposal management services to corporate customers.
While 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 while the unsecured creditors, estimated at £4 million, considered the CVA proposal.
Lee Ross 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.
“While rescuing a company as a going concern is the first purpose of the 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.”