‘Marathon effort’ gets £50m plant over line

Jun 11 2008 by Peter McCusker, The Journal

COMMERCIAL lawyers at Newcastle law firm Sintons saw their “marathon” 15-month commitment to one the region’s biggest deals of 2008 conclude last week when work began on a £50m development on the banks of the River Tyne.

William and Michael Thompson left their family building-demolition firm, Thompsons of Prudhoe, in 2002 to launch waste recycling business Graphite Resources.

Since then they have devoted their energies to creating the biggest steam autoclave recycling plant in the world with the capacity to handle waste from around 500,000 households.

Last week work began on the Derwenthaugh EcoParc and recycling centre and a dedicated team of lawyers enjoyed seeing their labour come to fruition.

Anthony Evans, senior associate at Sintons, has been working on the project since April 2007, with assistance from associate Amanda Maskery and solicitor Elaine Campbell.

The team has overseen the drafting of over 100 contract documents in that time.

Mr Evans said: “This was a real marathon. It has been quite an achievement by the Thompson brothers to raise the necessary funds against a backdrop of economic uncertainty.”

The brothers’ relationship with Sintons partner Adrian Dye, who has worked with the Thompson family for many years, meant the firm was the first port of call.

Mr Evans added: “The starting point was a flat piece of land on the banks of the Tyne with planning permission.

“It was a new business with no commercial contracts. A £50m start-up in that context is quite a lot of money to invest in a new project.

“We were delighted to see this deal get over the line.

“All of the parties on the deal worked exceptionally hard, but William and Michael Thompson really deserve everyone’s congratulations for delivering such a prestigious and groundbreaking project to the region. ”

The deal itself involved equity investment from Lehman Brothers, from management and from other investors led by the former Secretary of State for the Environment and Conservative MP, Lord Kenneth Baker. Debt finance is jointly provided by Allied Irish Bank and Alliance & Leicester.

William Thompson said: “I am absolutely delighted to have completed this deal as it has been more complicated than I initially envisaged.” The plant will reduce the tonnage of waste sent to landfill, without releasing the carbon emissions associated with incineration.

It will be able to recycle black bag solid waste together with a range of commercial and industrial wastes.