Imtech Water Waste and Energy Limited (in administration)

www.pwc.co.uk/imtech Joint administrators progress report from 22 January 2017 to 21 July 2017 Imtech Water Waste and Energy Limited (in administration) 4 August 2017 High Court of Justice, Chancery Division, Companies Court Case no. 5698 of 2015

www.pwc.co.uk/imtech Contents Abbreviations and definitions 2 Key messages 3 Overview of what we ve done to date 4 Progress since we last reported 5 Appendix A: Receipts and payments 7 Appendix B: Expenses 8 Appendix C: Remuneration update 9 Appendix D: Pre-administration costs 14 Appendix E: Other information 15 Imtech Water Waste and Energy Limited PwC Contents

Abbreviations and definitions The following table shows the abbreviations and insolvency terms that may be used in this report: Abbreviation or definition Company Administrators firm Meaning Imtech Water Waste and Energy Limited Tony Barrell and Matthew Callaghan PricewaterhouseCoopers LLP IR16 Insolvency (England and Wales) Rules 2016 IA86 Insolvency Act 1986 Sch.B1 IA86 Schedule B1 to the Insolvency Act 1986 HMRC VAT secured creditors preferential creditors unsecured creditors HM Revenue & Customs Value added tax Creditors with security in respect of their debt, in accordance with section 248 IA86 Claims for unpaid wages earned in the four months before the insolvency up to 800, holiday pay and unpaid pension contributions in certain circumstances Creditors who are neither secured nor preferential 2

Key messages Why we ve sent you this report I m writing to update you on the progress of the administration of the Company in the six months since our last report dated 14 February 2017. You can still view our earlier reports on our website at www.pwc.co.uk/imtech. Please get in touch with Kate Whitham on 0113 289 4162 or at kate.whitham@pwc.com if you need any of the passwords to access the reports. How much creditors may receive The following table summarises the possible outcome for creditors*, based on what we currently know. Class of creditor Current estimate (p in ) Previous estimate (p in ) Secured creditors N/A N/A Preferential creditors 100 100 Unsecured creditors 0.2 0.1-0.5 *Please note this guidance on dividends is only an indication and should not be used as the main basis of any bad debt provision or debt trading. The Company does not have any secured creditors. Preferential creditors (mainly employees) have received a dividend of 100p in the. The prescribed part provisions do not apply in this case as there are no floating charge creditors. We have received unsecured claims from creditors totalling 82,493,629. We are currently finalising the adjudication of a small number of claims and will shortly be declaring and paying a first and final dividend to creditors, which we anticipate will be around 0.2p in the. What you need to do This report is for your information and you don t need to do anything. 3

Overview of what we ve done to date Our previous reports set out details of what we ve done to date. These can still be viewed at www.pwc.co.uk/imtech We have remained in office in order to adjudicate claims made by unsecured creditors and declare and pay a dividend to unsecured creditors. This work is almost complete, following which we intend to cease to act. 4

Progress since we last reported Sale of tax losses In previous reports, we confirmed that we had negotiated sales of the Company s tax losses to three solvent group companies which were continuing to trade. In the period of this report we negotiated on a further sale, however, this sale was not ultimately completed. The purchaser did provide a sum of 1,721.50 as a contribution to our costs in dealing with this matter. We have now approached all potential purchasers and there will be no further realisations in this matter. Realisation of other assets All assets have now been realised and no further realisations are expected in this matter. Distribution to unsecured creditors In our last report, we said that we intended to issue a notice of intended dividend to creditors, in order to ensure all unsecured creditors had made a claim and to begin the process for paying a dividend to unsecured creditors. That notice was issued, setting a last date for proving of 16 June 2017. We received unsecured claims totalling 82,493,629.40. Owing to the nature of the Company s business, some of these claims are complex and have taken some time to resolve. We are currently dealing with a small number of residual claims and we expect that work to be completed shortly. We will then declare and pay the dividend. We expect this to be in the region of 0.2 p in the, depending on the resolution of these final claims and the final level of costs in the administration. Connected party transactions During the administration no payments have been made to connected parties. Investigations and actions Nothing has come to our attention during the period under review to suggest that we need to do any more work in line with our duties under the Company Directors Disqualification Act 1986 and Statement of Insolvency Practice No.2. Our receipts and payments account We set out in Appendix A an account of our receipts and payments in the administration from 22 January 2017 to 21 July 2017. Receipts in the period include: A contribution to our costs in respect of the sale of the tax losses in the sum of 1,721.50; and Interest earned of 14.45 on funds invested. Payments include: Storage costs of 3,510.78; Statutory advertising costs of 73.00; and Bank charges of 12.50. 5

Our expenses We set out in Appendix B a statement of the expenses we ve incurred to the date covered by this report and an estimate of our future expenses. The statement excludes any potential tax liabilities that we may need to pay as an administration expense in due course because we are awaiting confirmation from HMRC as to whether they will grant us tax clearance based on figures we have submitted to them. Our fees We set out in Appendix C an update on our remuneration which covers our fees, disbursements and other related matters in this case. Creditors rights Creditors have the right to ask for more information within 21 days of receiving this report as set out in Rule 18.9 IR16. Any request must be in writing. Creditors can also challenge fees and expenses within eight weeks of receiving this report as set out in Rule 18.34. This information can also be found in the guide to fees at: http://www.icaew.com/-/media/corporate/files/technical/insolvency/creditorsguides/2017/administration-creditor-fee-guide-6-april-2017.ashx?la=en You can also get a copy free of charge by telephoning Kate Whitham on 0113 289 4162. What we still need to do Before we cease to act we intend to declare and pay the first and final dividend to unsecured creditors, which will be declared shortly. Next steps We expect to send our next report to creditors at the end of the administration, in less than one month. If you ve got any questions, please get in touch with Kate Whitham, on 0113 289 4162. Yours faithfully For and on behalf of the Company A S Barrell Joint administrator A S Barrell and M B Callaghan have been appointed as joint administrators of the Company to manage its affairs, business and property as its agents without personal liability. Both are licensed in the United Kingdom to act as an Insolvency Practitioner by the Institute of Chartered Accountants in England and Wales. The joint administrators are bound by the Insolvency Code of Ethics which can be found at: https://www.gov.uk/government/publications/insolvency-practitioner-code-of-ethics The joint administrators are Data Controllers of personal data as defined by the Data Protection Act 1998. PricewaterhouseCoopers LLP will act as Data Processor on their instructions. Personal data will be kept secure and processed only for matters relating to the administration. 6

Appendix A: Receipts and payments Directors' statement of affairs Administrators' abstract receipts and payments 1 September 2015 to 21 January 2017 22 January 2016 to 21 July 2017 Total Receipts 535,985.00 Cash in hand 558,061.24-558,061.24 Non refundable deposit 42,000.00-42,000.00 Sale of intellectual property rights 220,000.00-220,000.00 Sale of Nereda pilot plants 50,000.00-50,000.00 Contribution to costs regarding sale of tax losses - 1,7 21.50 1,7 21.50 Sale of tax losses 255,1 85.24-255,1 85.24 Refunds 4,51 0.66-4,51 0.66 Bank interest 2,37 3.7 1 1 4.45 2,388.1 6 Book Debts 38,455.96-38,455.96 535,985.00 1,1 7 0,586.81 1,7 3 5.95 1,1 7 2,322.7 6 Payments Bank charges 51.00 1 2.50 63.50 Employ ee wages 44,629.61-44,629.61 Legal Fees & Expenses 1 1 2,923.92-1 1 2,923.92 Fees in relation to tax work 1,000.00-1,000.00 Miscellaneous expenses 345.90-345.90 Office holders' fees 400,000.00-400,000.00 Office holders' fees - pre-appointment 7 8,01 3.92-7 8,01 3.92 PAYE/NIC and Pension Deductions 20,605.7 7-20,605.7 7 Postage and Stationery 1 47.91-1 47.91 Statutory adv ertising 1 34.00 7 3.00 207.00 Storage Costs 1 0,952.84 3,51 0.7 8 1 4,463.62 Insurance 649.53-649.53 Agents' Fees - Property & Assets 7,889.64-7,889.64-67 7,344.04 3,596.28 680,940.32 535,985.00 Sub total 493,242.77 (1,860.33) 491,382.44 Distribution to preferential creditors 1 00p in (67,7 45.47 ) - (67,7 45.47 ) VAT pay able/(receiv able) (95,844.67 ) 94,828.41 (1,01 6.26) 535,985.00 Balance on interest bearing current account 329,652.60 92,968.08 422,620.71 7

Appendix B: Expenses The following table provides details of our expenses. Expenses are amounts properly payable by us as administrators from the estate and includes our fees, but excludes distributions to creditors. The table also excludes any potential tax liabilities that we may need to pay as an administration expense because amounts becoming due will depend on the position at the end of the tax accounting period. The table should be read in conjunction with the receipts and payments account at Appendix A, which shows expenses actually paid during the period and the total paid to date. Brought forward from preceding period Incurred in the period under review Cumulative Estimated future Anticipated total Administrators time costs Administrators disbursements Legal fees and disbursements Statutory advertising 549,447.85 132,812.45 682,260.30 10,500.00 692,760.30 7,706.24 1,014.13 8,720.37 250.00 8,970.37 70,478.82 5,351.90 75,830.72-75,830.72 134.00 73.00 207.00-207.00 Storage 18,452.84 3,510.78 21,963.62-21,963.62 Insurance 649.53-649.53-649.53 Total 646,869.28 142,762.26 789,631.54 10,750.00 800,381.54 8

Appendix C: Remuneration update Our fees were approved on a time costs basis by unsecured creditors. To 21 July 2017 we have drawn fees of 400,000 in line with the approval given, as shown on the enclosed receipts and payments account. The time cost charges incurred in the period covered by this report are 132,812.45. We set out later in this Appendix details of our work to date, anticipated future work, disbursements, subcontracted work and payments to associates. Our hours and average rates Aspect of assignment Partner Director Senior Manager Manager Senior Associate Associate Secretarial Total hours Time cost Average hourly rate Total time Strategy & Planning - - - 1.20 3.85 - - 5.05 1,714.90 339.58 44,224.70 Trading - - - - - - - - - - 67,1 59.00 Assets - - - - 0.25 - - 0.25 73.75 295.00 1 1 2,37 7.00 Inv estigations - - - - - - - - - - 9,230.25 Creditors - - 28.80 1 5.50 1 50.00 50.05 1.30 245.65 81,022.95 329.83 1 63,069.7 5 Accounting and treasury - - - 0.7 0 4.30 3.85-8.85 2,576.00 291.07 1 5,695.7 5 Statutory and compliance 1 6.00 2.50 2.20 5.90 22.1 5-3.20 51.95 26,317.30 506.59 1 35,809.55 Tax & VAT - 0.50-2.7 0 20.40 10.7 0-34.30 15,412.55 449.35 60,111.30 Employ ees & pensions - - 0.50 5.7 0 8.1 0-1.00 15.30 5,575.20 364.39 7 4,433.7 0 Closure procedures - - - - 0.40 - - 0.40 119.80 299.50 1 49.30 Total for the period 16.00 3.00 31.50 31.70 209.45 64.60 5.50 361.75 132,812.45 250.73 682,260.30 Brought forward at 21 January 2017 1,352.79 549,447.85 Total 1,714.54 682,260.30 Our time charging policy and hourly rates We and our team charge our time for the work we need to do in the administration. We delegate tasks to suitable grades of staff, taking into account their experience and any specialist knowledge that is needed and we supervise them properly to maximise the cost effectiveness of the work done. Anything complex or important matters of exceptional responsibility are handled by our senior staff or us. All of our staff who work on the administration (including our cashiers, support and secretarial staff) charge time directly to the case and are included in any analysis of time charged. Each grade of staff has an hourly charge out rate which is reviewed from time to time. Work carried out by our cashiers, support and secretarial staff is charged for separately and isn t included in the hourly rates charged by partners or other staff members. Time is charged in six minute units. The minimum time chargeable is three minutes (i.e. 0.05 units). We don t charge general or overhead costs. We set out below the maximum charge-out rates per hour for the grades of our staff who already or who are likely to work on the administration. 9

Grade Up to 30 June 2017 From 1 July 2017 Partner 840* 865 Director 740* 760 Senior manager 560 575 Manager 480 495 Senior associate qualified 400 412 Senior associate unqualified 295 304 Associate 250 258 Support staff 125 129 We call on colleagues in our Tax, VAT, Real Estate and Pensions departments where we need their expert advice. Their specialist charge-out rates vary but the following are the maximum rates by grade per hour. Grade Up to 30 June 2017 From 1 July 2017 Partner 1,250* 1,315 Director 1,150* 1,210 Senior manager 1,110 1,230 Manager 700 735 Senior Associate / consultant 515 545 Associate / assistant consultant 255 270 Support staff 150 160 * Time costs have been reported on the basis of the above rates. However, it was agreed with one of the major creditors that the rates for partners and directors would be capped at 75% of the above figures. In common with many professional firms, our scale rates may rise to cover annual inflationary cost increases. Payments to associates We have made no payments to associates in this matter. Our work in the period Earlier in this section we have included an analysis of the time spent by the various grades of staff. Whilst this is not an exhaustive list, in the following table we provide more detail on the key areas of work: - Area of work Work undertaken Why the work was necessary What, if any, financial benefit the work provided to creditors OR whether it was required by statute Strategy & planning Progress updates with appointment takers and senior management To ensure appointee involvement and that all vital information is captured Ensures efficient management of the administration 10

Strategy discussions with appointment takers and case staff Assets Liaising with KPMG regarding potential sale of tax losses, and receiving a contribution to costs. To ascertain whether funds were due to the administration and ensure orderly management of the claim Determining whether there was an asset available for creditors Creditors Dealing with enquiries from creditors and creditor correspondence Preparing and issuing a notice of intended dividend To keep creditors updated To prepare for returning funds to creditors Ensures return of funds to creditors Reviewing claims information received from creditors and liaising with creditors where further information was needed Internal discussions re to discuss complex claims agreement Admitting claims for dividend purposes Preparing a dividend calculation Accounting & treasury Accounting for receipts and payments Bank reconciliations To ensure management of the bank account is up to date Secured stewardship of estate funds Arranging for bank accounts to be removed from interest bearing Statutory & compliance Draft and issue progress report To comply with statutory obligations Required by statute or regulation Manager and appointee reviews Other statutory and compliance matters Tax and VAT Preparing and submitting tax returns To comply with statutory obligations Required by statute or regulation Requesting tax clearance from HMRC Preparing and submitting VAT returns Arranging for the Company to be 11

deregistered for VAT purposes Reconciling VAT accounts to ensure all VAT has been recovered Dealing with queries from HMRC Employees and pensions Matters following Employment Tribunal To comply with statutory obligations Required by statute or regulation Responding to enquiries from former employees To keep creditors abreast of developments Reviewing and admitting employee claims where necessary Considering pre dividend pensions issues Closure Obtaining clearances from external parties in preparation for closure To ensure proper closure of the case Ensures efficient closure of the case Drafting details of costs to close Our future work We still need to do the following work to achieve the purpose of administration. Area of work Work we need to do Estimated cost Creditors Accounting & treasury Statutory & compliance Dealing with enquiries from creditors and creditor correspondence Preparing for dividend to be issued Declaring dividend and issuing payments to creditors Payment of dividend to creditors Bank reconciliations Dealing with uncashed dividend cheques Draft and issue progress report Manager and appointee final review Other statutory and compliance matters Whether or not the work will provide a financial benefit to creditors 8,000 Ensures return of funds to creditors 1,000 Secured stewardship of estate funds 4,000 Required by statute or regulation 12

Tax and VAT Final VAT426 reclaim 500 Required by statute or regulation Closure Obtain further clearances prior to closure Pay all final costs and fees Draft and issue final progress report to creditors 3,500 Ensures efficient closure of the case. Disbursements We don t need to get approval to draw expenses or disbursements unless they are for shared or allocated services provided by our own firm, including room hire, document storage, photocopying, communication facilities. These types of expenses are called Category 2 disbursements and they must be directly incurred on the case, subject to a reasonable method of calculation and allocation and approved by the same party who approves our fees. Our expenses policy allows for all properly incurred expenses to be recharged to the administration and has been approved by unsecured creditors where required. The following disbursements arose in the period of this report. Category 2 Policy Photocopying - at 5 pence per sheet copied, only charged for circulars to creditors and other bulk copying. Costs incurred 102.24 2 Postage Postage costs for issuing last annual report 911.89 Total 1,014.13 Our relationships We have no business or personal relationships with the parties who approve our fees or who provide services to the administration where the relationship could give rise to a conflict of interest. Details of subcontracted work An element of the pre appointment tax work was subcontracted to KPMG LLP as they had the prior knowledge to complete the returns. No costs have been incurred during the period of this report. Legal and other professional firms We ve instructed the following professionals on this case: Service provided Name of firm / organisation Reason selected Basis of fees Legal services Addleshaw Goddard LLP Knowledge and expertise Tax work KPMG LLP Prior knowledge and expertise Time cost basis plus disbursements Fixed fee 13

Appendix D: Pre-administration costs The following costs incurred before our appointment with a view to the Company going into administration were approved for payment on 9 November 2015. These costs have been paid. Nature of costs Amount ( ) Fees charged by the administrators 78,014 Expenses incurred by the administrators 38,582 Fees charged by other persons qualified to act as an insolvency practitioner - Expenses incurred by other persons qualified to act as an insolvency practitioner - Total 116,596 14

Appendix E: Other information Court details for the administration: Company s registered name: Trading name: High Court of Justice, Chancery Division, Companies Court Case number 5698 of 2015 Imtech Water Waste and Energy Limited (Formerly Imtech Process Limited) As above Registered number: 03455127 Registered address: Date of the joint administrators appointment: Joint administrators names, addresses and contact details: Extension(s) to the initial period of appointment: Central Square, 29 Wellington Street, Leeds, LS1 4DL 1 September 2015 Anthony Steven Barrell of PricewaterhouseCoopers LLP, Donnington Court, Pegasus Business Park, Donnington, East Midlands, DE74 2UZ; and Matthew Boyd Callaghan of PricewaterhouseCoopers LLP, 7 More London Riverside, London,SE1 2RT Contact: kate.whitham@pwc.com Extension granted on 15 August 2016. The administration is now due to end on or before 1 September 2017. 15