The industry led body behind Scotland’s doomed Deposit Recycling Scheme owes more than £70m, according to administrators.
In the latest report filed with Companies House, Interpath has also confirmed that the Scottish National Investment Bank (SNIB) has received just £1m back from their £9m loan to Circularity Scotland (CSL).
READ MORE: State bank to lose £8m from Circularity Scotland after DRS collapse
CSL called in administrators last June after the SNP-Green government announced a two-and-a-half-year delay to the DRS, prompting financial backers to abandon the industry-led body.
At the time, Circular Economy minister Lorna Slater told MSPs that the UK Government was to blame, but opposition parties said the Green minister was responsible.
When CLS went into administration they had £1,870,421 in the bank, leaving the firm with under £900,000 to pay off their debts.
Biffa, the waste management specialist, hired to set up processing depots and order collection vehicles, is due £65m.
Reverse Logistics, a German software firm is owed £5m.
Interpath warns that the companies and other unsecured creditors are likely to only “receive a nominal dividend.”
CLS is due a VAT refund of around £400,000 from HMRC, though this is likely to “be subject to the deduction of any secondary preferential and unsecured claims that HMRC may have against the Company as at the date of our appointment.”
Interpath estimates this tax payment could be around £110,000.
If, however, HMRC “do not claim offset or determine that there is no VAT refund due” their bill “will be repaid in full.”
READ MORE: Deposit Return Scheme: Circularity Scotland calls in administrators
The delay to the DRS was announced after UK ministers made clear the Scottish Government would only be given the necessary exemption to the UK Internal Market Act if they made a number of substantial changes.
This included removing glass from the scope of the scheme and a demand that ministers in Edinburgh agree to standardise the deposit charge and labelling with the other UK schemes.
Ms Slater said the lack of detail around conditions laid down by Whitehall, including not knowing what the deposit charge would need to be, meant the scheme could not go ahead as planned.
However, CSL insisted that the scheme could comply with the UK Government's demands and still launch next March.
Murdo Fraser, from the Scottish Conservatives, told The Times: “The economic fallout from the SNP-Green government’s mishandling of the deposit return scheme is clearly going to continue.
“Firms have lost millions that they clearly have little chance of recouping, and the Scottish taxpayer is also footing the bill through the SNIB losses.
“All of this could have been avoided if Lorna Slater had listened to the numerous warnings from business, rather than obstinately ploughing ahead when it was clear her plans were falling to pieces.”
A spokesman for the Scottish government said: “The administration process is a matter for [Circularity Scotland’s] board and its administrators.”
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