Greenstar

[taz]

Anyone have their refuse collected by them down this way?? Because they just had a reciever appointed.

http://www.rte.ie/news/2012/0823/rec...e-company.html

[Hugged Rugger]

balls

[Ellethebod]

not good for those of us in the pharma industry either

[Point]

http://en.wikipedia.org/wiki/NTR_plc

[Waterfordlad]

I just paid almost 200 euros for next 3 months. Balls indeed

[Grandpasimpson]

It appears that the banks jumped the gun and called in the loans which Greenstar claim they have never missed a payment on.

[Point]

It appears that the banks jumped the gun and called in the loans which Greenstar claim they have never missed a payment on.

Surely NTR can resort to the courts ? If they haven't missed a payment, then they would be bound to have a good case...if that was true.

[glorob]

It appears that the banks jumped the gun and called in the loans which Greenstar claim they have never missed a payment on.

According to the Receiver Greenstar requested that a receiver be appointed. In many cases where banks appoint a receiver they "invite" the board of the Company to request the appointment as it can avoid a lot of subsequent, expensive litigation.


http://www.rte.ie/news/2012/0823/rec...e-company.html



It would appear that Greenstar breached some term of their banking facilities which meant the banks could call in their loans. The banks formally demanded repayment, did not get it and this would constitute an act of default enabling the banks to appoint a receiver.

[glorob]

I just paid almost 200 euros for next 3 months. Balls indeed

You should be ok.

The receiver will continue trading so that he can sell the business as a going concern.

[Hugged Rugger]

i pay monthly anyway so not that bad for me, just an inconvenience but not nice for the poeple working there who i've always found very good

[99_oK?]

According to the Receiver Greenstar requested that a receiver be appointed. In many cases where banks appoint a receiver they "invite" the board of the Company to request the appointment as it can avoid a lot of subsequent, expensive litigation.


http://www.rte.ie/news/2012/0823/rec...e-company.html



It would appear that Greenstar breached some term - not quite..... of their banking facilities which meant the banks could call in their loans. The banks formally demanded repayment, did not get it and this would constitute an act of default enabling the banks to appoint a receiver.

Greenstar did nothing wrong, is and has been paying it's bank dues and on time. What has happened is that the banks have notified them that the value of their assets have dwindled to a level which allows the banks to pull the plug. So for the banks to say Greenstar did anything wrong is well wide of the mark; banks acted in a way which would not be allowed in other countries (e.g. GB). This is what our government allows the banks to do here - basically pull the plug on viable on-going businesses. Was with someone this morning and he's under severe pressure to keep his business going for basically the same reason - banks are pulling the rug from under him.

And they have the cheek to try to refute the report released earlier this week which said they were basically refusing most small business ventures any request for loans or capital. Noonan should be calling the heads of the 3 banks involved and telling them in no uncertain terms that not only will the government not stand for this, but that he'll replace 'em if they don't reverse their policy (& decision in this case). This lack of action/intervention by the government is giving implicit permission to pull the plug on every viable business out there. Yet we hear nothing from Noonan except that more misery is on the way.

Country is financing the banks and yet our government is looking the other way while they pull the plug on the business community. Shame on the banks; bigger shame on 'our' (now very lame) government.

[glorob]

Greenstar did nothing wrong, is and has been paying it's bank dues and on time. What has happened is that the banks have notified them that the value of their assets have dwindled to a level which allows the banks to pull the plug. So for the banks to say Greenstar did anything wrong is well wide of the mark; banks acted in a way which would not be allowed in other countries (e.g. GB). This is what our government allows the banks to do here - basically pull the plug on viable on-going businesses. Was with someone this morning and he's under severe pressure to keep his business going for basically the same reason - banks are pulling the rug from under him.

And they have the cheek to try to refute the report released earlier this week which said they were basically refusing most small business ventures any request for loans or capital. Noonan should be calling the heads of the 3 banks involved and telling them in no uncertain terms that not only will the government not stand for this, but that he'll replace 'em if they don't reverse their policy (& decision in this case). This lack of action/intervention by the government is giving implicit permission to pull the plug on every viable business out there. Yet we hear nothing from Noonan except that more misery is on the way.

Country is financing the banks and yet our government is looking the other way while they pull the plug on the business community. Shame on the banks; bigger shame on 'our' (now very lame) government.

Greenstar have breached the terms of their banking agreements yet you state they did nothing wrong. Could you please explain? It appears NTR have given up on Greenstar so why should the banks do anything different?

The banks have acted lawfully and within the terms of their agreements with the company and to suggest that the manner in which they acted would not be allowed elsewhere is simply not true.

While the banks here have committed many sins we cannot expect them to support non performing businesses like Greenstar.

[Ragusa]

Fine Print in Loan Agreements will always give Banks upperhand. It can be anything from late accounts to late payments. But I think this case may be more about lack of support from NTR to Greenstar. Business should be viable without too much debt as you have to have thrash collection.

[99_oK?]

glorob,
Didn't say or imply that banks did anything illegal...... read my post again, please!

The issue that allowed the banks to act (i.e. pull the plug) is that the value of the company assets relative to the loans had changed. The company was in discussions with potential investors and they thought they had the agreement that the banks would not call in all debts (as they were legally entitled to....) until an agreement was reached with the new investors. Greenstar was/is still trading, but receivership changes the rules somewhat. From what I hear bank debt about €80M, assets €25M and turnover about €100M, and about 800 employees - I'm sure you can easily work out the ratios. And of course the deal(s) being negotiated with investor(s) is now history......

I know it's not the same as a mortgage on your home (legally only...), but it would be similar to the bank calling in your mortgage (say with 20 years to run....), because the property was deemed to be in negative equity. It's a situation that banks can implement here to many seemingly viable businesses.

What is slightly surprising is that the banks may now lose more than if they had allowed the company to continue trading normally.

Negative equity should not be an issue that can allow banks to act with impunity (& they can't in a home-mortgage situation) ; non-payment is a different issue, and didn't arise here. What pans out now?

As for 'non-performing'.....? Hardly. They claim to be the largest refuse 're-cycling' company here, and every household is (should be....) required to sign up to one of these guys. May be more in this though; we may see some sharks gobble all/part of this now.

Ragusa, do you know how much NTR have taken out of Greenstar, or what their level of 'investment' is?

[rebelyellow]

Only yesterday a fella from country clean knocked on my door and offered the same deal as Greenstar for a tenner less per month. From €28 down to €18 for the same service. He obviously knew what was coming! I pay by direct debit so I think its time to jump ship.

[munstershane]

I just paid almost 200 euros for next 3 months. Balls indeed

€200 for 3 months?! What size are your bins?
I only paid €260 for the year for our bins here in Tuam, Galway back in January. Thats an awful price.

[Viigand]

You are getting screwed if you are paying that.

[Blindsider.]

Decent company providing a relatively good service. Their Customer Service team are always helpful and they knocked a few quid off the price when asked.

If the banks are pulling the plug as per 99-ok's post, then that's a disgrace.

I certainly got the impression that they were an ok company and for the banks to jeopardise 800 jobs on a financial technicality seems ludicrous.

Imagine if the banks were publicly controlled and (in theory) could be held publicly accountable.........oh, wait.......

[Hugged Rugger]

maybe waterfordlad is a business customer?

[glorob]

It appears Greenstar reported a loss of €64 million for the year ended 31 March 2011. A large portion of the loss appears to relate to the write down in value of assets, mainly landfill sites and related goodwill. NTR recently wrote off over €30 million relating to its investment in Greenstar and appears to have given up on the Company.

The bankers had good reason to take action.

[bobbin]

101 reasons they may have been placed into receivership. For example, whilst they may have made every repayment this might have been depleting cash assets to do so etc and not being funded from profitable trading.

I dont know the ins and outs of this case, but if they were prepaid for their collections then there is always going to come a point where if they are trading at a loss the cash pile will run out, whilst they may still have cash at hand if their forecast for the coming six months shows its burning cash then they may have had no choice. There is very little benefit for the Bank in appointing a reciever if they dont really have to, a headache to manage, a fortune in costs & invariably a huge row with management.

[Waterfordlad]

€200 for 3 months?! What size are your bins?
I only paid €260 for the year for our bins here in Tuam, Galway back in January. Thats an awful price.

My mistake it was for 6 months - almost 400 euros for the year