CMS advises on sale of Hydrodec to Slicker Recycling

International law firm CMS has advised the Administrators of Hydrodec Group Plc (in administration) on its restructuring initiatives and the sale of its US sub-group to Slicker Recycling (Slicker), a West Midlands business specialising in the recycling and treatment of waste lubricating oils.

The Hydrodec Group is a clean-tech oil re-refining group with assets and operations in the USA, Australia and the UK, which was formerly listed on AIM. It collects and hydrotreats used transformer and naphthenic oils, which are essential to run electric grids, from its Canton facility in north-east Ohio. The deal has secured the continuance of the US operations and ongoing employment for Hydrodec employees. Slicker’s managing director, Mark Olpin, has pledged to grow the business further in the years ahead.

The restructuring is notable because it made use of the new “moratorium” process rushed through by parliament in the midst of the Covid-19 pandemic. The moratorium provides eligible companies with breathing space from enforcement action, while a company rescue plan is pursued. 

The CMS team was led by Partner Glen Flannery, with assistance from a team including Associate Ben Bodmer and trainee Patrick Campbell, and client relationship partner, Alasdair Steele.

Glen Flannery comments: “We are delighted to have supported Hydrodec through to a successful going concern sale of its US business. The new “moratorium” deployed by the company provided an invaluable breathing space from enforcement action during the rescue initiative.“