A multi-million euro rescue plan has saved 250 jobs at Barna Waste with Cognito Asset Management buying the company out of examinership.
The move was funded by Bank of Ireland and it is understood that a number of Barna Waste’s creditors were forced to take a writedown on the debts owed to them.
The largest creditor was Bank of Scotland Lloyds, which was owed €9m, when the company sought the courts protection through the examinership process.
A spokesman for Cognito, Pat O’Sullivan, said the company was well positioned and had a number of valuable licences that will allow it to grow.
Barna Waste, which has 30,000 customers in the north west across Galway, Roscommon and Sligo, entered into examinership on Apr 11.
The examiner, Neil Hughes, presented a scheme of arrangement prepared on behalf of the directors of Bruscar Bhearna Teoranta, trading as Barna Waste, which was approved by the High Court on July 18.
Cognito will keep the same management team in place and managing director Sean Curran thanked employees, customers and suppliers who have supported them over the past six months.
Baker Tilly Ryan Glennon, Eversheds and Tobin Engineering were principal advisers throughout the buyout process.
Brian Hyland, corporate finance partner, Baker Tilly Ryan Glennon, who led the team of financial advisers, said: “This was a great success story for Barna Waste, the industry, and vital for employment in the West. The company was clearly able to demonstrate that there is a viable business and will continue to be a key employer in the region.”
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