Plasco workers likely to get little

Many of the people who used to work for failed Plasco Energy will likely receive very little compensation from their former employer as the dismantling of the failed energy-from-waste firm continues to work its way through court.

A recent deal to sell virtually all of the company’s remaining assets to Maynards Industries, a global liquidation specialist, for US$487,000 has resulted in no cash to pay severance or any other outstanding fees to 173 former employees. The liquidator will strip the facility and sell off the components.

According to Chris Rootham, a lawyer with Nelligan O’Brien Payne LLP who is representing many of the company’s former employees, the deal with Maynards doesn’t provide any cash for his clients as the money is all earmarked to go back to the company’s secured creditors — most notably, the Town of Blind River, which is owed $17.9 million.

A subsequent deal that will see a handful of the company’s patents transferred to a new holding company, which is partially run by secured creditors, is expected to result in very little for those employees.

The sale of the firm’s remaining assets to Maynards substantially wraps up the company ’s court-ordered creditor protection, although the Plasco is still officially under the protection until Sept. 25.

Plasco built a “demonstration facility” a decade ago on cityowned land across the street from Ottawa’s main landfill on Trail Road, and entered into a long-term agreement with the city to process waste in late 2011. Over the years, the company was able to raise more than $300 million. But Plasco was unable to secure financing for its commercial plant by the end of 2014, missing its final deadline under the contract.

The company entered creditor protection early this year.