Greenstar staff told wage cuts needed to secure buyer

Tuesday 29 January 2013 17.46
Greenstar waste company went into receivership in August 2012
Greenstar waste company went into receivership in August 2012

Staff at the Greenstar waste recycling company, which was put into receivership five months ago, have been told that the receiver may have found a potential buyer for it provided wages are cut significantly.

Greenstar, which is part of the NTR group, employed about 800 people and collected waste from over 80,000 households and 12,000 businesses a year.

It is one of the largest waste management companies in the country, handling one million tonnes of waste each year.

Last August David Carson of Deloitte was appointed receiver as the firm had debts of around €83 million, owed mainly to its banks.

Since then, he has been operating the company as a going concern with a view to selling it.

A spokesperson for Deloitte declined to comment on suggestions that a sale could be imminent.

However sources confirmed that a number of parties had expressed interest in Greenstar since the appointment of the receiver.

However, they said no one was willing to contemplate a deal on the basis of the current cost structure, which was described as "a major obstacle to a sale".