The takeover of waste firm Biffa by its lenders has been completed, the company has confirmed.
Four creditors swapped debt for equity and injected £75m new investment into the firm as part of a recapitalisation deal writing off around half of Biffa’s billion-pound debt.
The company confirmed the deal was completed on 28 January, following court approval, in a statement in the firm’s annual accounts for the year to March 2012.
It read: “Under the scheme, the lenders entitlement to debts due from Biffa Group Ltd and its subsidiaries were released and the Biffa Group was transferred into the ownership of new holding companies substantially owned by Senior Creditors under a new capital debt structure.”
The new shareholders of the firm include investors Angelo Gordon & Co, Avenue Capital Group, Babson Capital Europe Limited and Sankaty Advisors.
The annual accounts showed the firm’s after tax profits fell to just £73 in 2012, down from £1681 the previous year. No dividends were paid.
Chief executive Ian Wakelin told MRW in December that the firm would invest £250m in new infrastructure following the takeover.
He said Biffa could see “potential substantial growth in the coming years” in its commercial and industrial (C&I) collection business, said Wakelin, once it develops new recycling and energy facilities.
Biffa’s struggle with crippling debt came to a head over the past year, and in January 2012 its private equity owners, Global Infrastructure Partners and Montagu Private Equity, hired Goldman Sachs to “scour the sector for consolidation opportunities”.
A spokeswoman for Biffa declined to comment.