20th Nov 2015 13:14
LONDON (Alliance News) - Renewable Energy Holding PLC on Friday said it will enter talks with its main creditor, Utilico, to determine if it can continue trading, after an application to construct a wind farm in Wales was turned down by the UK Government.
Renewable Energy is due to repay debt to Utilico, its largest shareholder by virtue of its 28.71% stake in the company, by December 31. Its shares have been suspended from trading on the London Stock Exchange until the outcome of talks with Utilico becomes clear.
Utilico has two loan facilities with Utilico. The first of those, a GBP2.5 million facility, has been fully utilised by Renewable Energy, with GBP4.0 million of the the second, GBP4.25 million facility already used. Renewable Energy had net liabilities of GBP607,000 at the end of 2014.
The planning application for the Mynydd y Gwynt wind farm in Wales has been the company's main focus, and Chairman David Weir has previously warned that its financial position was dependent on winning consent for the project to go ahead.
On June 8 Weir said that Renewable Energy would likely enter administration if consent wasn't granted and further funding wasn't made available.
In the wake of Friday's decision, Renewable Energy said it was "disappointed" that the Secretary of State for Energy and Climate Change, Amber Rudd, declined the application for development consent for the Mynydd y Gwynt wind farm.
The company said it is "carefully considering" the details of the decision.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
REH.L