6 days ago
- Business
- Irish Independent
Solar 21 still aiming to pay back 90pc despite insolvency of key asset
But such returns are now 'heavily dependent' on the value that can be achieved from the sale of the rights of a proposed energy project in North Lincolnshire that has the go-ahead from the UK government. That is according to an update from consultancy group Alvarez & Marsal which is supervising a High Court-approved scheme of arrangement aimed at repaying Solar 21 investors.
Management has said the expected value of this proposed project is now 'significantly higher than the £100m (€116m) estimate provided in the Schemes'.
Thousands of Irish investors are owed as much as €300m by the Rathcoole investment firm.
The sale of the Tansterne power plant — which the company had valued at over €100m just two years ago — had long been touted as a key part of the plan to raise the money to repay investors.
But in June it was sold as part of a 'pre-pack administration' for a total sale price of €4m, including €3.3m of debt, meaning the sale will not provide any return to the scheme of arrangement, according to the report.
Trading performance at another key asset slated for sale, the Plaxton Biogas Plant, has been 'worse than forecast due to operational issues and liquidity constraints', the report said.
'There have also been delays obtaining planning consents and the planned sales process has been postponed following tax advice,' it said.
The value that Solar 21 can achieve for the North Lincolnshire project rights will now need 'to compensate for the lower than-expected returns from the Tansterne Biomass Plant and Plaxton Biogas Plant,' said the report.
'It is also likely it will take longer than anticipated in the Schemes Scenario for funds to be returned to the Scheme Investors (although Management expects the assets will still be sold within the deadlines in the Schemes, i.e. by 26 November 2026),' it said.
