Belfast Telegraph

Monday 15 September 2014

Waste firm put into receivership

Waste firm Greenstar has been put into receivership

One of the country's biggest waste companies has been put into receivership, it has been confirmed.

Greenstar, which deals with a million tonnes of waste a year, claimed banks have demanded immediate payment of loans.

However it is understood the banks extended loan repayment periods on a number of occasions over the last year. The firm's debts are in the region of 83 million euro.

The board of directors said: "It is regrettable that they have chosen to take this action at this time in respect of a business that had not missed any scheduled repayments to its banks and was in a strong cash position to continue trading for the foreseeable future."

Greenstar employs about 800 people and collects waste from more than 80,000 households and 12,000 businesses a year. It is part of the NTR Group.

The board said it recognised that further investment in the group was required and there had been ongoing efforts to find an investor: "As a result of the banks' action, the board regrettably has had no option but to facilitate the banks in appointing a receiver in the hope that the receiver will continue the business of the group and retain existing staff.

"The board will work hard with the receiver to secure as many jobs and livelihoods of its staff and suppliers as possible whilst maintaining the high standards of service excellence our customers enjoy."

David Carson, of Deloitte, has been appointed as receiver and will run the business as a going concern with a view to effecting a trade sale. It revealed a number of parties have expressed interest in acquiring the business.

"Business and residential customers have no action to take as a result of this announcement as all waste collections at commercial and residential customers' premises continue as normal," he said. "Employees at Greenstar have been advised of the receivership and will continue to service customers throughout Ireland."

In a statement, the NTR Group said Greenstar Ireland, its board, management and shareholders have made every effort to reach an agreement with the banks to secure the future of the business and its employees. Greenstar claimed its lenders gave no prior indication or notice of possible receivership action and that directors had been working in good faith with the banks.

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