Administrators for the failed New Earth Solutions Group (NESG) and New Earth Solutions Facilities Management (NESFM) have said non-preferential creditors will receive 1.5p in the pound, significantly lower than the figure previously estimated.
The businesses were placed under administration by Duff & Phelps on 7 June 2016, after New Earth failed to break into the gasification and pyrolysis market and ran into massive amounts of debt.
Priority debts were first issued to secured creditors, which included £35m of £41m owed to the Co-op bank.
Administrators Duff & Phelps estimated NESG’s assets, from which non-preferential creditors will be paid, comes to just under £6m. This includes £3.2m in equipment and vehicles and £1.5m in cash.
In total, £600,000 has been set aside to pay non-preferential creditors.
Initially, administrators estimated non-preferential creditors would receive between 4p and 8p in the pound, based a statement from NESG that claims would total £9.1m.
But claims have now totalled more than £36.2m, leaving just 1.5p in the pound.
The rise in claims has forced Duff & Phelps to request the period of administration be extended for a year. Duff & Phelps will be required to issue monthly reports during the extension.
NESG oversaw five companies which continue to operate mechanical biological treatment facilities at Avonmouth, Canford (pictured) and Cotesbach along with the Blaise and Sharpness in-vessel composting plants.
The five were sold by the administrators in June 2016 to DM Opco and, in October 2016, they were bought by Irish waste firm PandaGreen.