A Lancashire waste recycling group has gone into administration following a dispute over a £38m contract.
The TEG group, based at Buckshaw Village, near Chorley, requested the suspension of trading of its shares on AIM earlier this month pending clarity on its financial position.
Now the board has decided the group must be placed in administration. The firm said: “Further to the announcement made on 25 October 2014, the Board announces that it has been unable to secure further funding for the Group.”
Daniel Smith and William Dawson of Deloitte LLP have been made joint administrators of the TEG Group PLC.
TEG said recently its dilemma had been caused by £2.8m held back after it carried out work for Costain under the Greater Manchester Waste Contract.
Following the appointment of the Administrators, Nplus1 Singer Advisory LLP has resigned as nominated adviser and broker to the company.
If the company fails to appoint a replacement nominated adviser within one month from today, the admission of its AIM securities will be cancelled. It is unlikely that the Administrators will seek to appoint a new nominated advisor.
The Administrators have immediately successfully concluded the disposal of Simpro Limited to Veolia ES (UK) Limited.
The Administrators have also been appointed administrators of the Company’s subsidiaries TEG Environmental Limited and TEG Energy Limited.