Isle of Man onshore wind developer Renewable Energy Holdings is to be liquidated after it admitted there is “no prospect” of repaying debts totalling £10m.
REH has filed a winding-up claim to the High Court of Justice of the Isle of Man after it was unable to make a loan repayment on 31 March.
The company took on two loans of £2.5m in 2009 and £4.25m in 2013 from Utilico Investments, the latter to fund the planning application for its 27-turbine Mynydd y Gwynt wind farm in Powys.
The 89.1MW development was refused last November by Energy Secretary Amber Rudd. The project is the subject of a judicial review to be heard in Cardiff in June.
REH said in a statement: “The situation in mid Wales remains very uncertain with no likelihood of a new grid sub-station being constructed within the life of any possible MyG permits, even if the judicial review successfully persuaded the Secretary of State to consent the project.”
The developer is also the owner of the consented 30MW Kobylany wind farm in Poland, for which it has been unable to find a buyer.
As a result of an inability to pay the second stage of the grid connection fee, Kobylany's grid connection contract has been cancelled by Polish utility PGE Distribution.
REH also owns shares in Australian wave developer Carnegie Wave Energy worth around £2.2m.
The company said its assets are valued considerably less than the outstanding £10m liabilities and there would be no net proceeds for REH shareholders and no in specie distribution of Carnegie shares.
AIM-listed REH’s shares are likely to be cancelled from trading within the next 30 days, it added.
http://renews.biz/102129/reh-to-be-liquidated/
I wonder what happens to the CWE shares?
Image: Mynydd y Gwynt project site (Mynydd y Gwynt Ltd)
Add to My Watchlist
What is My Watchlist?