A BUYER has been found for a biodiesel company in administration and under investigation by the Serious Fraud Office.

The business and some of the assets of Worldwide Bio Refineries have been sold to newlyformed company WBR Contracting, The Northern Echo has learned.

The man behind the new company is Bruce Candlish, who is understood to be working with the founder of Worldwide Bio Refineries (WBR), Ray Johnson.

WBR, which was based in Newton Aycliffe, County Durham, went into administration two months ago after falling into financial difficulties.

A spokesman for international accountancy and advisory group Mazars confirmed yesterday: "The business and assets were sold last week to a new company called WBR Contracting, set up by Bruce Candlish with a number of other investors. Ray Johnson may still be working with them.

"There are potentially other assets in overseas subsidiaries that we are still in the process of assessing."

A creditors meeting is taking place today at the Best Western Hotel, in Croft, near Darlington.

WBR is under investigation by the Serious Fraud Office, as part of an inquiry called Operation Affair, amid fears that shares in the company may have been sold to investors as part of a so-called "boiler room" operation, in which bogus share dealers persuade investors to buy stock at hugely inflated prices.

Investors contacted the Serious Fraud Office after buying thousands of pounds-worth of shares in WBR from several brokers not regulated by the FSA, including Anderson Consultants and Allied Advisory.

The spokesman for Mazars said the investigation into WBR would continue, but would not affect WBR Contracting.

In a separate twist, the premises that used to be occupied by WBR in Newton Aycliffe were yesterday offered for sale.

Darlington-based Ward Bros Holdings, which owns the 50,000sq ft premises on the Heighington Lane Business Park, said it was looking for a buyer or tenant.

Mr Johnson, who set up WBR in 2003, was yesterday unavailable for comment.

Two months ago, he described the future of the company as promising, despite it being placed in administration.

He said WBR was only months away from producing biodiesel at its Newton Aycliffe factory and was already making tens of thousands of tonnes of the green fuel at its larger plant in Singapore.

At the time he said: "Going into administration is another part of a process which the directors and investors hope will lead to recovery of the business."