Futures Forum: Brexit: and pulling the plug on funding business projects
On particular Plymouth-based project looked as though it would fold - but now there seems to be a reprieve:
Brexit scuppered firm may be saved after $1.2m subsidiary sell-off
By WT_Herald | Posted: September 28, 2016 By WILLIAM TELFORD, Business Editor, @WTelfordHerald
The Turnchapel-based renewables company appointed administrators in August 2016 owing creditors £4.4million and blaming the UK's decision to leave the European Union for nixing efforts to raise £2.8million to fund projects.
It had also made an after-tax loss in 2015 of more than US$3million.
But now joint administrators Andrew Beckingham and Colin Prescott, of Leonard Curtis Recovery Limited, have announced a binding agreement to dispose of the company's interest in Seawind Holding and its subsidiaries in Chile for US$1.2 million to Safe Harbour Capital.
Also, contractual arrangements have been made for the purchaser to sort out contractual liabilities and deal with the claims of some unsecured creditors.
The joint administrators still say it is likely there will be either a rescue of Rame or at least a cash return to more of the company's unsecured creditors.
They say there may be potential for a Company Voluntary Arrangement ("CVA") to be put to creditors for consideration following the sale of assets.
A report to the London Stock Exchange said: "The outcome and extent of any return therefore is dependent upon resolution of the on-going CVA discussions and funding negotiations and additionally the discharge of the costs associated with the administration."
The joint administrators have already announced they have received new interest from potential investors and there is the possibility of seeking new investment.
Meanwhile, a Devon entrepreneur has acquired a controlling stake in one of Rame's subsidiaries, thus saving it.
Also, contractual arrangements have been made for the purchaser to sort out contractual liabilities and deal with the claims of some unsecured creditors.
The joint administrators still say it is likely there will be either a rescue of Rame or at least a cash return to more of the company's unsecured creditors.
They say there may be potential for a Company Voluntary Arrangement ("CVA") to be put to creditors for consideration following the sale of assets.
A report to the London Stock Exchange said: "The outcome and extent of any return therefore is dependent upon resolution of the on-going CVA discussions and funding negotiations and additionally the discharge of the costs associated with the administration."
The joint administrators have already announced they have received new interest from potential investors and there is the possibility of seeking new investment.
Meanwhile, a Devon entrepreneur has acquired a controlling stake in one of Rame's subsidiaries, thus saving it.
Its fate was hanging in the balance when parent company Rame went into administration but the new deal brings together two Devon based renewable energy firms with the combined experience to provide design, financing, installation and maintenance across a range of clean energy technologies for UK and international customers.
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Beco and Devon Power had collaborated on power projects for several years.
The acquisition enables both firms to offer more services to existing customers and collaborate on new business development and technology offerings.
Mr Nicholls said: "Beco is one of the UK's most respected on-grid and off-grid clean energy specialists, and with Beco and Devon Power successfully collaborating on a number of major projects in recent years, today's transaction is a logical move to formalise the relationship between the two firms and strengthen the capabilities of both companies.
"We now have a strong customer pipeline that will be jointly delivered by Beco and Devon Power, and importantly we are allocating resources from both firms to develop new products and services such as battery storage to help our customers store clean and cost efficient electricity.
"We firmly believe that by providing bespoke and cost effective solutions to our customers we can play a part in establishing renewable energy as the norm within a short space of time."
Brexit scuppered firm may be saved after $1.2m subsidiary sell-off | Plymouth Herald
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