A green technology company specialising in organic waste solutions has gone into administration following a long-running bid to secure the release of £2.8 million in retentions.
TEG, based in Chorley, Lancashire, had suspended trading of its shares on the Alternative Investment Market in October last year.
The company had been in discussions with engineering and construction group Costain for more than two years over the release of retentions under the Greater Manchester Waste contract, a Costain contract to design and build recycling and waste management facilities across Greater Manchester.
TEG had been carrying out remedial works for Costain as part of a programme to bring the contract to a close. It had put forward options for exiting the contract but suspended its shares after being told on 27 October this would not be possible.
It said at the time: “The board believes that there is no prospect of the release of any of the retentions owed to TEG in the near future, which will impact significantly on working capital requirements.”
On 19 December, TEG announced it had been unable to secure further funding and its board had decided it had to place the company into administration.
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