FEARS surround over 600 direct and indirect jobs at one of the country’s largest waste removal service providers, after examiners moved into its Limerick offices this Wednesday. A hive of administrative activity was reported at the Luddenmore headquarters in recent days, where it is believed an extensive investigation into the future and stability of the company was undertaken. It is alleged that the company experienced financial difficulties in recent months and years.
An application submitted this Wednesday morning to the High Court on behalf of Mr Binman, sought court protection for the company. Affidavits have been furnished to the chancery court list and the matter is due to be heard again on October 18.
However, in the interim, Mr Billy O’Riordan of Pricewaterhouse Coopers has been appointed as examiner to Mr Binman and its subsidiary companies, Greenport Environmental, Rural Refuse and Recycling and Clearpoint Recycling Ltd.
Under the helm of Mr Martin Sheehan Snr since 1994, Mr Binman through the Sheehan family has site locations at Grange in Kilmallock, and Carrick-on-Suir, with accompanying offices in Clonmel, Ennis, Newcastle West and Limerick city.
The company is now under the management of Mr. Martin Sheehan Jnr.
In recent weeks, a decision was made by Bank of Scotland (Ireland) to withdraw its support and the company directors sought examinership to negotiate and restructure its debts.
With a price war rampant throughout the industry, the company was said to be “compromised,” following claims that lending institutions sought to recoup on their lending.
But Mr Binman say that they have an investor willing to inject the companies with finance to fund their working capital.
Four years ago the company was involved in the purchase of a bio mass site in Foynes, for a reported €17 million.
Other purchases made in recent years include a €5 million farm in Kilmallock, adjacent to the Luddenmore site.
Mr Binman recently launched a service in the Cork area. Discounted services were also launched in Waterford.
It has been suggested that an imminent rescue package could be put in place, while a firesale of the company to competitors is also seen as a possibility, should the proposed business plan fail to secure long-term viability.
Financial difficulties and the resistance of the Bank of Scotland Ireland to make finances available to Mr Binman were alluded to during court proceedings brought against the company by local authorities.
In 2010, Mr Binman was fined at Limerick District Court over its non compliance with Environment legislation, as it left over 30,000 of its customers without a suitable wheelie bin for the collection of recycling waste.
The company stated that it was unable to get credit from the bank to carry out the necessary upgrade and roll-out of the bins to its customers, further stating that despite this it would still endeavour to complete its regulatory obligations.
Company financial data was also withheld from the public domain during a recent court case, being deemed to be “sensitive information”.
The company was convicted of breaches of the health and safety and fined €40,000 over an incident where an employee lost his life in an onsite accident in 2008.
Recently, Mr Binman tried to overcome financial difficulties without the support of the UK bank and endeavoured to test trial a pilot initiative for the collection of rubbish bins before 8am in the city centre.
The initiative began in mid-September and was to run for a month and if successful, plans were to be furnished to run the scheme throughout the city centre.
The company believes that it has a viable business plan despite the financial turmoil it faces.
