LONDON (Alliance News) - REACT Energy PLC said Wednesday that it and its related companies have applied to the High Court in Dublin to seek the appointment of an examiner, with the aim of restructuring the business to create a "sustainable business model" under court protection.
REACT said it has decided to seek examinership after funding discussions with a strategic investor were suspended due to a dispute with the landlord of its Enfield site, difficulties in financing the re-powering of its Newry site, and legal actions taken against it by some creditors.
Under Irish law, the examinership process provides the company with court protection to enable the examiner to put together a scheme of arrangement with creditors, in order to allow the company to trade as a sustainable business after the examinership process.
An independent accountant's report has concluded it is possible for REACT to be restructured into a sustainable and profitable business, it said, and Altair Group Investment Ltd is prepared to support REACT through the examinership process. A separate third-party strategic investor has indicated it would be prepared to invest in REACT to facilitate the scheme of arrangement, the company said.
REACT has issued a loan note to Altair Group for up to EUR500,000 as part of the process, the proceeds of which will be used to fund the process.
Trading in REACT shares remains suspended.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.