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.”
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