Jim Tucker and David Pike from KPMG’s Restructuring practice were appointed Joint Administrators of a number of operating companies of the Calon Energy group.
This follows the appointment of administrators over the holding company or ‘Topco’, Calon Energy Limited, on 24 June 2020.
These administration appointments include Severn Power Limited, Calon Energy (Severn) Limited, Sutton Bridge Power Generation, Sutton Bridge Power Systems (London) Limited and Calon Energy (Sutton Bridge) Limited.
Calon Energy Group is an Independent Power Producer (IPP) in the UK, with a 2.3 GW Combined Cycle Gas Turbine (CCGT) portfolio operating across three sites:
Today’s appointments include the operating companies for the Severn Power and Sutton Bridge Power stations, which employ 68 staff. The operating company for the Baglan Bay Power Station, which employs a further 38 staff, is not subject to administration appointments at this time and remains under the control of its directors.
Jim Tucker, restructuring partner at KPMG and joint administrator, said:
“Following the appointment of administrators over Calon Energy Limited, the group’s Topco, on 24 June, CEL’s administrators have worked closely with the senior management team and key stakeholders to consider a number of options in relation to CEL’s operating subsidiaries.
“The recent and ongoing challenges facing the UK power market mean that these power stations are currently not generating sufficient returns to continue trading effectively. It has therefore been determined that the power plants will be placed into a safe and dormant state of managed preservation to provide more time to explore all options in order to recover value for the group’s creditors.”
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