YSB Recycling, which is based in Bury near Manchester, was involved in exporting recyclable materials to the Far East.
As much of the debt is going to be paid off as possible.
Simon Jones, YSB Recycling/Adapt Recycling
The business will now operated under the name Adapt Recycling after a deal negotiated by Bolton-based administrators Tenon Recovery. The administrators told letsrecycle.com today that it would be largely “business as usual” for both YSB's former employees and customers.
Matthew Bowker, administrator at Tenon Recovery, said: “YSB have gone into administration and we were able to secure the sale of the business and its assets to Adapt Recycling Ltd which is a company associated with YSB's director Simon Jones, who is a director and shareholder of the new company.”
He added: “That has preserved all of the company's jobs and for the supply contracts in the UK we have given an opportunity to assign the contract to Adapt provided the customers are happy, which has been largely successful. So it is largely business as usual.”
Administration
Companies House, the national register of businesses operating in the UK, records that YSB Recycling, a private limited company, went into administration on July 4, 2007.
Mr Jones and Mr Bowker explained that the reason YSB had become insolvent because of an unpaid debt from a customer in the Far East, who had also refused to take 1,000 tonnes of material being sent to him, incurring “significant” shipping and disposal fees.
Mr Jones said: “YSB became insolvent because of a bad debt and it was my duty to declare this to look after my creditors and gain the maximum return on the debt.”
He added: “As much of the debt is going to be paid off as possible.”
Recycling
Before entering into administration, YSB Recycling took in around 60,000 tonnes a year of plastic, steel, aluminium, cardboard, paper and waste electrical and electronic equipment, from councils, supermarkets and recycling agents across the UK. It also recycled mixed cans and plastics from which it created a wood substitute called “plaswood”.
YSB exported material abroad and issued PERNs, as well as sorting its own material at a materials recycling facility (MRF) in Hong Kong, which supplied a YSB Recycling factory in Asia with wood.
Mr Bowker explained that at the time of administration, approximately 5,000 tonnes of recycled materials were being shipped to the Far East for reprocessing and that he was currently negotiating with the freight forwarding companies and customers to ensure the contracts were completed.
He said: “We are negotiating to ensure safe delivery and completion of these contracts.”
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