LONDON (Alliance News) - Renewable Energy Holdings PLC Thursday said it has started winding-up the company so it can begin liquidation proceedings as it has established there is "no prospect" of repaying its outstanding debt.
The company has filed a winding-up claim to the High Court of Justice of the Isle of Man after admitting it "borrowed extensively" from UIL Ltd over the last seven years. Renewable Energy Holdings was expected to make a GBP10.0 million repayment on Thursday, but simply cannot satisfy that payment.
"In accordance with the terms of the loans, the board has formally notified the lender of its financial position and is now seeking a court appointed liquidator to manage a winding up of the company. The board expects the Lender to register its preferential rights and to take control of the company's remaining assets with the liquidator in due course," the company said.
The company holds wind assets in the UK, the Kobylany project in Poland and has an investment in Carngie Wave Energy Ltd which is worth around GBP2.2 million.
Importantly, Renewable Energy Holdings said the value of those assets is "considerably less" than the GBP10.0 million it owes in debt, meaning shareholders will receive nothing once the company has been wound-down.
As a result, its nominated adviser, Strand Hanson Ltd, has resigned. That means the company's shares will be cancelled from trading within the next 30 days unless a new adviser is found. However, that is very unlikely as the company said it was "probable" the shares would be cancelled.
Shares will be suspended in the meantime.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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