Tue, 21 Sep 2021 | ADMINISTRATION
A portfolio of 10 wind turbines across Scotland, England and Northern Ireland are to be marketed for sale by administrators following the collapse of the company that owned them. Edinburgh-headquartered Future Renewables Eco (FRE) entered administration earlier this week, appointing Interpath Advisory to handle the process.
FRE was established in 2015, with funding coming largely from £24 million that was invested by 750 bondholders between 2015 and 2017. The company employed no full-time staff, with maintenance carried out by contractors
The firm’s 10 turbines are located across nine fully operational sites, with each generating profit after operational costs. However, the profits generated proved insufficient to meet bondholders’ interest payments with the company also having overdue capital repayments.
In an effort to address these cashflow issues, FRE sought to change bondholders’ debt terms. A bondholder meeting to vote on this is scheduled for September 28, however, following a high volume of proxy votes against the proposal, the group’s directors have moved to put the firm into administration.
The administration comes shortly after the collapse of another Scottish wind turbine firm, Argyll-based CS Wind, earlier this month.
Administrators from Interpath will now continue to operate FRE’s wind turbines while looking to secure a sale of the portfolio.
Interpath Advisory’s Chief Executive Blair Nimmo commented: “The UK is renowned for its expertise in renewable energy, and whilst FRE has been successful in compiling a portfolio of operationally successful assets, there was a mis-match between levels of cash being generated and the capital structure of the business.”
Interpath’s Managing Director in Scotland, Alistair McAlinden, added: “Understandably, bondholders will be anxious about the impact of the administration appointments upon the sums which FRE owe them and will have many questions. Over the coming days we will be contacting all bondholders to explain the implications of the administration appointments and to confirm next steps.”
View the latest distressed UK businesses here.
This is a rare opportunity to acquire a well-established civil and structural engineering business on the Wirral, known for its expertise in building design and advanced use of BIM software.
Opportunity to acquire an established industrial coatings contractor specialising in the oil & gas industry, offering comprehensive services.
An opportunity to acquire a leading provider of automated industrial sealing solutions, strategically located in the East and West Midlands.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.