Recycling company Environmental Waste Controls (EWC) is to come out of administration after creditors overwhelmingly approved a Company Voluntary Agreement (CVA).
The running of EWC is now being returned to its director William Edwards.
The Merseyside-based company went into administration in August and it owes creditors an estimated £4m.
Although the terms of the CVA agreement have not been disclosed, CVAs typically allow companies to continue trading under the modifications put forward by creditors.
Administrator Grant Thornton said EWC consistently delivered trading profits, but had problems with cash flow after several non-trading cash costs were incurred.
Grant Thornton’s joint administrators Les Ross and David Riley proposed the CVA immediately following their appointment. More than 90% of voting creditors approved the CVA.
Ross said: “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 its gratifying for my team to be able to deliver this rescue.”
The EWC group, including subsidiary Environmental Waste Control (South London Community Recycling Services), employs 267 people at sites including Knowlsey, East Kilbride and Leicestershire, and operates household waste recycling centers on behalf of local councils as well as providing waste disposal management services to corporate customers. It was established in 2003.