Administrators appointed at UBB Waste Essex – formed by Urbaser and Balfour Beatty – have published a statement of affairs showing that the company’s total deficiencies are £85.8 million.
The document, published on Companies House on 23 October, lists a total of four creditors. These are: Urbaser (£25.2 million), Balfour Beatty Group (£10.8 million), UBB Essex construction ( £2.2 million) and Essex county council (£26.3 million).
A separate receiver’s report from the administrators, FRP Advisory, published on 22 October, states that Essex is owed £36 million, which includes £10 million compensation for a recent legal dispute which went in its favour (see letsrecycle.com story).
However, it states that “the statement of affairs does not take into account the significant ongoing safety, security and compliance costs at the facility, for which UBB remains ultimately responsible”.
It adds that “any payment to unsecured creditors by way of the prescribed part, will be made by a subsequently appointed liquidator”.
The full documents can be seen on Companies House here.
UBB entered a PFI contract with Essex county council to design, build and operate a waste facility in Basildon across a 28-year period in 2012. It was to handle 417,000 tonnes a year.
The plant was built under a 25 year contract (see letsrecycle.com story), and was said to be worth £800 million over its lifetime.
Essex began court proceedings in 2017, arguing that UBB “failed to design and construct the facility” so that it was capable of passing the Acceptance Tests in time.
A final judgment was handed down in September in favour of Essex council (see letsrecycle.com story). UBB Essex then entered into administration shortly after.
Source: letsrecycle.com Waste Managment