Corporate Due Diligence for an Administrator – Midlands

Background: E3P

E3P, working on behalf of an Administrator, were instructed to undertake a detailed environmental compliance audit of a metal foundry located in the midlands. The audit comprised a site inspection and detailed interview with key site personnel to determine the environmental status of the site, liabilities associated with which, would legally transfer to the Administrator for the period until the site and business could be sold.

Findings

The audit identified that there had been a significant incident within one Furness on site and that as a result of significant changes to the site a number of emission points had been changed. However, upon E3P’s inspection of the site’s environmental permit it appeared as though the incident and changes to the site had not been reported or updated, suggesting that the site was not operating compliantly and at risk of enforcement action by the regulator.

Outcome

E3P advised the client to undertake further enquiries with the regulator in order to try to agree a period for the permit to be updated. E3P completed these negotiations with the regulator and was able to reach agreement that the site would not face enforcement action while the permit was updated. This also enabled to the Administrator to proceed without the risk of enforcement action.