Content

Cabinet received a report on the parent
company guarantee for Urbaser
Limited.
 
DECISION TAKEN:
Cabinet agreed that a Deed of Novation be
entered into that transfers the liabilities of  Urbaser S.A.U, under
the Parent Company Guarantee, to FCC Environment (UK) Ltd
 
REASON FOR
DECISION:
On 27th March 2020,
the Council entered into a Parent Company Guarentee with Urbaser
S.A.U in relation to the waste and recycling contract with
Urbaser Limited (The Contractor).
 
Urbaser S.A.U. were the parent company of
Urbaser Limited, at the time and the
PCG allowed the Council to call upon the Contractor’s parent
to remedy any breach so that the Contractor’s obligations
under the contract are met. 
 
The entire issued
share capital of Urbaser Limited is
being sold to FCC Environment (UK) Limited by Urbaser S.A.U as a result a novation of the PCG is
required to pass the liabilities of the outgoing Parent Company,
under the PCG, to the incoming Parent Company.
 
Services provided to
residents would not be affected.