The City of Ottawa has officially severed its ties with the waste company Plasco in an out-of-court settlement, city solicitor Rick O'Connor announced in a memo Tuesday evening.

This ends a relationship that began in 2012, when the city signed a 20-year, $180 million contract with Plasco to divert residential waste from landfills and instead use it to produce electricity.

City Council approved a recommendation to terminate its relationship with Plasco on February 25, after the company obtained a court order to protect itself from creditors.

In January 2015, the city put out a call for other waste companies capable of handling household garbage after Plasco missed its final deadline to provide plans for a waste-to-energy plant.

Plasco had been given until Dec. 31, 2014 to secure financing for a proposed plant, after missing two previous deadlines.