(Alliance News) - Hadrian's Wall Secured Investments Ltd said Wednesday it expects to make a "material" loss on its investment in Biomass Premium Fuels Ltd, as the company was unable to secure a joint venture partnership with an unnamed UK company.
Shares in the investment company were 9.9% lower in London in afternoon trade at 58.99 pence each.
The joint venture was for the operation and management of Biomass Premium itself, with both the parties targeting completion by 2019.
The two companies were also discussing arrangements in connection with Biomass Optimum Fuels Ltd, another investee of Hadrian's Wall.
The firm's investment in Biomass Premium and Biomass Optimum amounted to GBP10.7 million and GBP6.7 million, respectively.
As a result of the "recent and unexpected developments", Hadrian's Wall has increased its loss reserves against Biomass Premium and Biomass Optimum to GBP3.2 million and GBP18.1 million, respectively.
"The investment adviser continues to explore options for BPFL and BOFL and recovery from the related assets and further updates will be provided in due course," Hadrian's Wall added.
By Paul McGowan; paulmcgowan@alliancenews.com
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