Composter Bioganix split in half as assets sold
Two composting sites belonging to failed composter Bioganix have been snapped up by rivals in an assets sell off. New Earth Solutions has bought the in-vessel composting plant in Gloucestershire, while Countrystyle has taken over the IVC facility in Suffolk.
Bioganix was forced to sell the sites in a pre-pack arrangement with administrators to avoid insolvency. In a statement it said: “The company will not itself be placed in administration but is likely to be wound up in due course.”
Shares in the company, traded on the AIM markets have been suspended and the company’s statement said: “It appeared unlikely that the proceeds receivable from any disposal of the operating business and assets of the Group would result in a surplus to shareholders.”
New Earth Solutions said it aimed to continue running the 50,000 tonnes a year Sharpness Dock IVC in Gloucestershire “without interruption”. The company this would be easier because it was retaining the facility’s operational team.
New Earth Solutions commercial director Peter Mills said 'We are delighted to have acquired this strategically important facility. Its incorporation within our network of existing and planned facilities will enable New Earth Solutions to accelerate the establishment of a national network of biodegradable waste treatment facilities.”
Countrystyle will also need continuity at its acquired site, the 35,000 tonne capacity Parham facility in Suffolk, as it has taken over Suffolk’s ten year kitchen waste contract. Composting of kitchen waste for up to seven collection authorities in Suffolk will be handled at the facility.