Indebted waste firm Biffa is set to be seize by creditors according to press reports.
The Sunday Times reported that the HSBC bank is leading a group of disgruntled creditors to take over the company from its current private equity owners – Montague, Global Infrastructure Partners and HBOS.
HSBC will take control of Biffa’s operations, according to the report.
Creditors forced the waste firm to put itself up for sale earlier this year fearing its £1bn debts had become unsustainable.
Biffa was acquired by the buyout consortium in 2008 for £1.2bn. It then bought rival firm Greenstar in 2010 for £135m.
Brian Strutton, national secretary for public services at the GMB union, quoted by the Guardian, said unions were seeking urgent talks with Biffa to protect jobs and services.
He said: “Biffa is a fundamentally sound business crippled by the greed of private equity owners. The core waste and recycling operation can emerge stronger without the millstone of debt around its neck.”
A Biffa spokeswoman said: “‘Biffa is a profitable, cash generative business which is performing in line with its plans. The company is undertaking a well-managed, planned restructuring process, working with its lenders to reduce the debt on the business.”