The court appointed receiver of Dutch waste paper exporter Van Puijfelik has said that it may be unlikely that the company’s creditors, a number of whom are UK-based recycling firms, will recover outstanding debts from the bankrupt company.
Van Puijfelik based in the city of Breda – was declared bankrupt by the courts on Monday September 9, with outstanding debts of between 25 and 30 million.
The company was among the largest exporters of waste paper operating in the Netherlands, shipping up to 48,000 tonnes of material to markets including the Far East with material coming from the UK and elsewhere in Europe. The collapse of the company is also thought to be problematic for recyclers in Ireland who are claimed to be one of the largest suppliers to Van Puijfelik.
According to Hann Oude Grote, insolvency specialist at Dutch legal firm Lawton Advocaten who was appointed to oversee the dissolution of the company, falling prices for recovered paper and an increase in the cost of shipping to Asia in 2012 had lead to the companys demise.
Meanwhile, he also outlined an ongoing investigation into alleged illegal export of waste to China by the company, but said he expected Van Puijfelik to be cleared of any wrongdoing.
Speaking to letsrecycle.com, he said: “The company made huge losses in 2012 due to the fact that prices of waste were diminishing and prices for transport to the Far East were sky high. In March there was a dispute with the Dutch government over waste that was delivered to China that the government says was polluted which caused a loss of confidence from customers.”
Evidence
Around 80 containers of waste believed to have contained higher than permitted levels of contamination have been retained by the Chinese authorities as part of its investigation into the incident, but Mr Oude Grote claimed that so far inspections of the containers have yet to provide any evidence that the firm had broken the law.
Mr Oude Grote added that he is currently working to recover as much value as possible from the companys existing assets, which includes property at its site in Breda, paper sorting and baling machinery and several vehicles.
He also explained that suppliers are entitled to claim back any consignments of waste paper that were delivered to the company up to 60 days prior to the date that Van Puijfelik was formally declared bankrupt. Two shipments of waste have already been returned to the UK this month.
But, Mr Oude Grote added that it is currently unclear how much money could be recovered from the companys assets and said that money owed to banks and the tax authorities will take priority over other creditors.
The company had been operating for around 80 years prior to being declared bankrupt, employing 90 staff all of whom have now lost their jobs.
Commenting on the developments, Simon Ellin, chief executive of the Recycling Association, the trade body representing recyclers of paper and other dry recyclables in the UK said that the news was unwelcome, but added that it should not dent confidence in the waste paper sectors recovery following the recession.
He said: “I am amazed at how resolute our industry has been throughout these periods of recession. We have had some casualties throughout that time, but generally I am glad there have not been more.”
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