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Waste management technology provider ReEnergy Group (RGY:AIM) needs £1 million for short-term working capital or it could go bust. The company is in financing talks with one of its biggest shareholders and other parties. It has also shut down US water desalination operations, previously claimed to be a priority business.

Chairman Roger Hewitt said the closure was necessary to focus ReEnergy’s resources on UK waste management activities, which he claimed to be developing ‘quicker and sooner’ than the desalination arm. ‘We have got numerous projects in the pipeline in the UK, which should produce positive cash flow later this year,’ he added.

ReEnergy’s shares have fallen by a factor of 11 on 2005’s float price of 77.5p after being distracted by refinancing efforts and a failed waste supply contract. It is still trying to negotiate new terms with Worcestershire County Council.

Estech, a subsidiary business, has been awarded preferred bidder status with VT Group (VTG) and Wakefield Council for a 150,000 tonnes per year autoclaving facility which sterilises waste.