THOUSANDS of batteries that exploded in a horror blaze had been rotting for months after a disposal firm went bust with £2million of debts.

The terrifying inferno near homes at the unattended Fenix Recycling Centre on Wednesday came after it was forced to close last September.

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Firefighters battled the massive inferno overnight for the second time in a yearCredit: John Kirkby

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Exploded battery shells after the horror blast blazeCredit: John Kirkby

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The terrifying inferno broke out on Wednesday

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The industrial site was “not operational” but batteries were still being storedCredit: John Kirkby

And a councillor representing affected locals in Kilwinning, Ayrshire, insisted it should have been prevented.

Labour’s Donald Reid, who had lobbied for the dangerous site to be cleared, said: “We need to be maximising pressure to have the site tidied at the very least and have the waste removed.

“I think it’s a wake-up call that we need to get the site cleared. We need to give assurance to the neighbours.”

We told how the blast rocked the area exactly a year after a first explosion at the site. Residents told how the blaze, which sent batteries flying into the air, made their neighbourhood resemble a “war zone”.

The site at the Byrehill Industrial Estate was mothballed after the previous blast resulted in Fenix being stripped of its operating licence.

It came as part of an “enhanced package of enforcement action” requiring the firm to remove any waste in breach of strict rules to another facility.

But Fenix went bust with its crippling debt shortly afterwards.

The company has unpaid bills ranging from £80 to £200,000 with local and national firms and authorities.

Debts include £23,841 with North Ayrshire Council, £107,635 with HMRC‘s insolvency claims unit and £6,021 with environmental watchdog Sepa.

Companies House lists the firm’s directors as Damian Lambkin, of Exeter, and Daniel Nye, of London.

Massive fire rips through battery recycling plant in Scots town

Former boss Mr Lambkin has since moved on to recycling firm Any- Waste.Com.

A council source said the industrial site was “not operational” but batteries were still being stored.

A North Ayrshire Council spokesman said: “We continue to engage with Sepa who have responsibility for the regulation and enforcement of the site.

“A joint Police Scotland and Scottish Fire and Rescue Service investigation to establish the cause of the fire is under way.

“It is clearly a matter of concern that this is the second incident at the same site and we will be seeking answers as to how this happened.”

Last night, Mr Lambkin said: “I am not in a position to comment on how this most recent incident was allowed to occur, as I have had no involvement with the site since the company entered liquidation.”

Mr Nye could not be reached. Property deeds link the industrial site’s land to a firm called Ashtenne Caledonia Limited.

The batteries are not their property.

A spokeswoman added: “We are working closely with the authorities and doing all we can to support our customers and the local community.”