The future of over 250 long-term employees at Barna Waste has been secured, following approval of a ‘scheme of arrangement’ by the High Court.
The company entered examinership in April and court-appointed examiner, Neil Hughes of Hughes Blake, last Thursday presented a Scheme of Arrangement prepared on behalf of the Directors of Bruscar Bhearna Teoranta, trading as Barna Waste, to the High Court, which was approved by Judge Brian McGovern.
As part of the examinership process, Cognito Asset Management Limited, an investment and corporate restructuring business, in conjunction with the existing management team, successfully completed the buyout of Barna Waste Group.
According to a spokesperson for the group, this investment puts Barna Waste on a firm financial footing for the future and secures the employment of over 250 long-term employees.
“The successful conclusion of this examinership process is another example that examinerships save jobs in the economy,” said Hughes Blake Managing Partner Neil Hughes.
“This sort of restructuring of viable businesses, both large and small, will play a key role in Ireland’s economic recovery efforts. There is a strong focus on job creation but we can’t ignore the real and viable opportunities that exist to protect and secure jobs within many indigenous Irish companies.”
He added that the support of Cognito was critical to the success of the process as was the support of all creditors, employees, customers and Bank of Ireland.
A spokesperson for Cognito, Pat O’Sullivan, said they were delighted to have invested in the business and cited a wide range of key attributes, which attracted them to the deal.
“Barna Waste presented an attractive investment opportunity for Cognito. It has well invested assets and transfer stations with EPA licenses in strategic locations, a new composting facility on the outskirts of Galway, a leading market position across Connaught and loyal staff, suppliers and customers.
“In addition, we respect the capable management team and strongly believe in their ability to grow the business. The Cognito team will add its management expertise to the process, as we plan to work closely with existing management to realise our joint ambitions for the future of the company. The business is now adequately capitalized with sufficient resources to fund much needed capital expenditure to improve operating performance and grow the business,” he said.
Following the announcement, Barna Waste MS Sean Curran expressed gratitude to the employees, customers and suppliers who have supported them over the past six months.
“While the past few months have been difficult and challenging, we were rewarded in our belief that Barna Waste continued to be a viable business. With the support of Cognito we now have new structures in place which will facilitate the continued growth and success of the organization.
“We would not have been in a position to plan for the future without the continued loyalty and support of our customers, employees and suppliers. We are extremely grateful to them and look forward to working with them for many years to come.”
Barna Waste Group is a major employer in Connaught with over 250 employees and over 30,000 customers. It has an extensive base of domestic customers across the region and provides a wide range of waste management services to commercial customers including skip hire, recycling, and sludge removal.