3 days ago
- Business
- Irish Independent
Older pension investors will take the hit as damaged Solar 21 plant to be sold on insolvent basis
The company is now attempting to finalise a sale of its subsidiary GB-Bio, which controls the power station, on an insolvent basis via 'a pre-pack administration', it said.
The investment firm had previously told the High Court that the station was valued at £96m and that it had an offer of £116m to buy it.
A sales process for the Tansterne plant – which the company has been unable to repair following a fire – had confirmed that there was 'no interest from purchasers in acquiring GB-Bio on a solvent basis', according to an update to investors from consultants Alvarez & Marsal (A&M), the supervisor of Solar 21's High Court-approved scheme of arrangement.
Most investors were older pension investors who will not be able to make up the loss
'Due to creditor pressure and the lack of solvent offers for GB-Bio, the board of GB-Bio filed a notice of intention to appoint administrators to GB-Bio,' said A&M.
The 'current offer for the assets of GB-Bio is materially lower than the value presented' in its High Court scheme of arrangement, said the A&M update.
The potential purchaser has lodged a deposit of £150,000 but the sale still 'remains uncertain'.
A financial services industry source said the outcome marked 'the largest loss of retail investor funds in a single investment that I am aware of.'
Tey continued: 'Most investors were older pension investors who will not be able to make up the loss.'
The most recent set of accounts for GB-Bio, to the end of December 2023, show a deficit in shareholders' funds of almost €56m.
Thousands of Irish investors put as much as €370m into Solar 21 projects.
