New Earth Solutions Group Limited and New Earth Solutions Facilities Management Limited is under new ownership, it has been announced.
Following the news this week that New Earth Group had gone into administration, it has been announced that DM Opco have bought the companies and will continue to trade under New Earth.
The sale has safeguarded the 143 jobs across the New Earth Group’s five operating sites and head office in Verwood; although none of the operating sites themselves are in Administration.
DM Opco Limited – “I look forward to working with the management team and all employees in order to re-establish the business and deliver strong future growth”
The business, assets and subsidiaries of the companies, which were purchased by DM Opco Limited, will continue to trade as New Earth.
A spokesperson for DM Opco Limited commented, “I look forward to working with the management team and all employees in order to re-establish the business and deliver strong future growth. New ownership has enabled the Group to strengthen its balance sheet and it is now fully funded.”
The announcement of New Earth going into administration was made earlier this week in a letter to shareholders of the New Earth Premier Fund.
Fund director, Michael J Richardson, wrote: “The senior lenders are currently in discussions with their advisers concerning what further options they wish to pursue as senior secured creditors of the New Earth Companies. Once their proposed course of action has become clearer, we will write to you again in respect of the implications for the Fund.”
New Earth was in talks with an unnamed developer of large combined heat and power plants over restructuring New Earth Solutions Group operations.
After no progress was made in reaching an agreement with senior lenders, proposals were put forward in early 2016 which offered to provide a €50m equity injection to restructure the company’s balance sheets. This was rejected by senior lenders.
An agreement was then reached for the developer to purchase the senior debt from the senior lenders if certain conditions were met by the end of May.
After accounts for the year ending 31 January 2015 were filed, however, customers threatened to stop taking off-takes if bank guarantees were not given.
According to reports, the lenders were not prepared to accelerate payment requests by customers or accept the developer’s offer of assistance.