Plastics recycler Regain Polymers has entered a company voluntary arrangement (CVA) with its creditors.
A CVA including settlement of debt has been accepted by creditors, meaning the company can continue to trade.
It is understood the business had accrued significant debt from historic developments and the deal will keep it from going into administration.
Director James Patchett of accountancy firm Turpin Barker Armstrong, joint nominees for the deal, said: “A meeting was held on 7 December, proposals were approved and […] all creditors were notified of the outcome.”
Regain is owned by investment firm Aurelius, which sold fellow recycler Evolve Polymers in November to US firm Plastipak Packaging.
At the time of the sale, Aurelius said it would concentrate all its plastic recycling interests on Regain, which is based in Allerton Bywater, West Yorkshire.
It said it expected Regain to profit from increased demand for resilient materials that can be used to replace timber in railway construction, road construction and shipbuilding and a higher volume of recyclable plastics.
Formed in 1991, the company specialises in the development and production of innovative structural components made from recycled plastic waste.
It now operates a 50,000-tonne compounding capacity site compared with a 2,000-tonne capacity in its infancy. It accepts post-consumer and post-industrial plastic scrap in an 8,000-tonne washplant.
Originally a recycler of post-consumer polystyrene products, the company now processes a variety of different rigid plastics.