WRAP To Write Off £1.65m Eco Plastics Debt

WRAP has confirmed that it intends to “write off” ECO Plastics’ £1.65m debt, following the company going into pre-pack administration. 

Coca Cola Enterprises also invested in the company, following a major fire at its site in 2009, and WRAP provided a subordinated loan.

WRAP said that it has concluded an equity arrangement with the new investor Aurelius, which acquired ECO Plastics’ business and assets last month. (See CIWM Journal Online story)

WRAP – “As a result of the ECO Plastics pre-pack administration, WRAP will be writing off its loan in full. WRAP has concluded an equity arrangement with the new investor, the terms of which are confidential”

A WRAP spokesperson said: “As a result of the ECO Plastics pre-pack administration, WRAP will be writing off its loan in full. WRAP has concluded an equity arrangement with the new investor, the terms of which are confidential”.

The Hemswell-based ECO Plastics site is described as one of the world’s largest plastic reprocessing plants, is capable of sorting 150,000 tonnes of mixed bottles per year and represents around 35 percent of the total UK bottle collection in the UK every year.

Aurelius says it will now look at operational improvement capabilities and financial support to the company’s current operations, with a core focus on the long-term strategic development of the business.

The announcement follows news earlier this week that ECO Plastics’ founder and deputy chairman, Jonathan Short (pictured), has stepped down as chairman of the Resource Association. (See CIWM Journal Online story)

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