One of the country’s biggest waste companies has been put into receivership, it has been confirmed.
Greenstar, which deals with a million tonnes of waste a year, claimed banks have demanded immediate payment of loans.
The board of directors said: “It is regrettable that they have chosen to take this action at this time in respect of a business that had not missed any scheduled repayments to its banks and was in a strong cash position to continue trading for the foreseeable future.”
Greenstar employs about 800 people and collects waste from more than 80,000 households and 12,000 businesses a year. It is part of the NTR Group.
The board said it recognised that further investment in the group was required and there had been ongoing efforts to find an investor.
“As a result of the banks’ action, the board regrettably has had no option but to facilitate the banks in appointing a receiver in the hope that the receiver will continue the business of the group and retain existing staff,” the directors said.
“The board will work hard with the receiver to secure as many jobs and livelihoods of its staff and suppliers as possible whilst maintaining the high standards of service excellence our customers enjoy.”
The board of Greenstar invited David Carson of Deloitte as receiver.
In a statement, the NTR Group said: “Greenstar Ireland, its board, management and shareholders have made every effort to reach an agreement with the banks to secure the future of the business and its employees.
“At this time, the banks have made their own decision about how they want to move forward and the future of the company is now in the hands of the receiver.”
Greenstar claimed its lenders gave no prior indication or notice of possible receivership action and that directors had been working in good faith with the banks.
It said it spent the last 12 months working diligently to market the business and find fresh investment to protect jobs in the company and those who supply and trade with Greenstar.
The NTR Group says that in 2010 Greenstar recycled more than 70% of the material it collected and it is the largest exporter of recyclable commodities in Ireland.
It runs 15 material recovery facilities nationwide including the largest automated recycling facility, which divert between 70% and 95% of waste from landfill.