The acquisition includes the New Earth shares and all business and assets from DM Opco Ltd.
New Earth Solutions was sold to DM Opco Ltd in June this year, following the announcement that it had been placed into administration.
New Earth was in talks with an unnamed developer of large combined heat and power plants over restructuring New Earth Solutions Group operations.
“Whilst ensuring we continue to offer a reliable service to the customers of the five waste treatment facilities, it is our intention to further invest in order to ensure continued high rates of recycling and diversion of waste from landfill.”
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.
PandaGreen’s will take over operations at its mechanical biological treatment (MBT) plants in Avonmouth, Canford, Cotesbach, and its in-vessel composting sites in Blaise and Sharpness.
Brian McCabe, managing director of PandaGreen, said: “Panda is delighted and excited by this acquisition. Whilst ensuring we continue to offer a reliable service to the customers of the five waste treatment facilities, it is our intention to further invest in order to ensure continued high rates of recycling and diversion of waste from landfill.”
Formerly commercial and operations director at New Earth, Peter Mills, will head up PandaGreen’s UK operations as managing director.
He said: “We are delighted to have Peter on board as he brings a level of past knowledge and experience to this new business and we look forward to working with Peter and his team into the future.”
“The business will continue to trade as New Earth Solutions for the time-being.”