Partner Article

D1 plant sale hits snag

BIOFUELS company D1 Oils has seen its attempts to push through the £2.6m sale of its Bromborough site hit further delays.

The firm, which started life in the North East, said there was “material uncertainty” over the completion of the sale of the site, after the third-party buyer cited issues regarding timing and structure of the deal.

The company was told by the buyer that it would not be able to fund the deal, even under a revised payment structure.

D1’s board has decided to continue discussions for a further short period with the buyer but will look to remarket the site if completion does not occur within this period.

The company was originally founded by prominent North East entrepreneur Karl Watkin but now has no presence in the region following the closure of its biofuel refinery in Middlesbrough.

An exchange of contracts in connection with the sale was announced on 4 February, while earlier this month D1 announced that it was working with the buyer to resolve some issues.

The company was originally founded by prominent North East entrepreneur Karl Watkin but now has no presence in the region following the closure of its biofuel refinery in Middlesbrough.

The AIM-listed firm has jatropha plantations in areas including India and South Asia, and plans to use it in the production of bio-diesel.

This was posted in Bdaily's Members' News section by Ruth Mitchell .