Eco Plastics, the Hemswell, England-based plastics recycler, is looking for a buyer to secure what its founder called a “long-term platform” for its future.
In a statement Jonathan Short, Eco Plastics' founder and the company's deputy chairman, said: “Eco Plastics recently initiated a sales process to provide a long-term platform for the future strategic development of the business.
“As part of this process, the board and existing shareholders have held talks with interested parties.
“The company has the support of its debtholders in achieving this goal. Further announcements will be made if and when appropriate.”
Meanwhile Ludgate Environmental Fund (LEF), an investment vehicle, announced today it had written off the carrying value of its interest in Eco Plastics, which at the end of September stood at £2 million.
In today's announcement LEF said: “Unfortunately this situation has not improved in recent months, and although the company has been working with creditors to find a solvent solution, this is no longer expected to be achieved.”
In 2012 Coca-Cola Enterprises Ltd. signed up to a project with Eco Plastics called Continuum Recycling Ltd. to recycle its plastic drinks bottles, reaching a half a billion bottles processed in the first year of the joint venture's operation.
Eco Plastics posted a pre-tax loss of £4.9 million last year, on sales of £47.3 million.