Who is protected on insolvency: the environment or the creditors?

Crouchland Biogas are not actually in liquidation, but back in administration due to an error by the administrators. The big question is why is the Environment Agency just letting them off the clear up of lagoon 3? What happened to “The polluter pays”?

The following article from Burges Salmon citing Scottish cases, suggests that it could be possible for the EA to push harder to ensure that the clean up is met as part of the administrators duty.

There seems to be a real imbalance where everything is done to try and help the creditors, but little is done to clear up the mess that their investment enabled.

It is worth remembering that Burges Salmon acted for Crouchland Biogas Ltd. As they themselves conclude, 'This is an area that is ripe for further challenge.'

https://www.burges-salmon.com/news-and-insight/legal-updates/who-is-protected-on-insolvency-the-environment-or-the-creditors/

Spill 4.JPG