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New Earth creditors set to lose more than 90%

Creditors of the failed New Earth Solutions Group (NESG) are set to receive as little as 4% of the debts owed to them, administrators have revealed.

The latest progress report from Duff & Phelps, lodged with Companies House, indicates that non-preferential creditors are owed a total of £9.17m, of which just under £7m has been claimed.

But the administrators estimate that the dividend when the process is concluded will be between 4p and 8p in the £. They say that administration will conclude within six months and the next report to creditors will be the final one.

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. It said it will use the facilities as a “UK growth platform” after previously expanding across the Irish Republic.

The latest report confirms that the main financier of NECG, the Co-Op Bank, will lose up to £6m by the time the administrators complete their work.

Duff & Phelps have a statutory obligation to file a report on the conduct of all directors of NESG in the three years before the group failed.

The administrators say the report, which has been sent to the Department of Business, Energy and Industrial Strategy, is confidential.

 

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