Waste management group completes a £1 billion recapitalisation

World renowned waste management company the Biffa Group has successfully completed a £1 billion recapitalisation.

The recapitalisation began back in January after the High Court approved the agreement.

Part of the agreement saw the company's debt reduced, which has been an issue for Biffa for several years.

The debt has been reduced by more than half (55 per cent), from £1.1 billion to £520 million.

The original debt had been held by Montagu Private Equity in partnership with Global Infrastructure Partners and HBOS Fund Investments who took Biffa private in 2008 at a cost of £1.7 billion.

In addition, the company has received a huge injection of money - £75 million - to get the group back on track.

Because of the new financial status of the firm, the waste management company has been able to draw up a new investment plan worth £250 million.

The plan will be put into action over the next five years, letsrecycle.com reports.

It will be led by the new shareholders, who are now the majority shareholders of the company. They are: Angelo Gordon & Co, Avenue Capital Group, Babson Capital Europe Limited and Sankaty Advisors.

Ian Wakelin, chief executive of Biffa, told letsrecycle.com that he was confident that the new shareholders will get their fair return.

"These funds have said this is a really good business which is clearly too highly leveraged and has too much debt. With sensible terms they are willing to invest their cash, saying we think this is a great business and something we can get involved with," he said.

Indeed, the new shareholders seem to be incredibly happy with the company, saying of the existing staff that "they continue to develop and strengthen the company by building on its leading position in the UK waste management market".