WRAP writes off £1.65m Eco Plastics debt
The Waste & Resources Action Programme (WRAP) has announced plans to write off a £1.65m loan to bottle recycler Eco Plastics, after the company went into pre-pack administration in December.
However WRAP also announced that it had agreed an equity arrangement with investment firm Aurelius, which acquired Eco Plastics last month. Terms of the deal are undisclosed.
News emerged in December that Hemswell-based Eco Plastics had lost £2m in share value, thanks to tough trading conditions, and administrator's documents revealed that the company had accumulated losses of £12.5m over the past two years.
In light of those struggles, the recycler was placed into pre-pack administration, which allowed the factory to continue to operate while a buyer was sought.
The factory sorts around 140,000 tonnes worth of plastic bottles a year, accounting for 35% of the total UK bottle collection in the UK every year.
Eco Plastics founder and deputy chairman Jonathan Short said: "This news is not just a vote of confidence in the future of Eco Plastics, but a vote of confidence in the promising future of the UK's fast growing recycling sector.
"Working with Aurelius will take the Eco Plastics story to the next level. This new owner will not only bring in new expertise and financial resources, but also a shared commitment to the development of a more sustainable, circular economy in the UK."