# Sustainable Marine Energy Limited (08139012)

> Why UK company 08139012 went into administration, from the administrators' statement filed at Companies House, by companydig. Interactive version: https://companydig.co.uk/company/08139012

- **Status:** Administration ended
- **Administration began:** 2023-08-09
- **Administrators' firm:** Deloitte
- **Incorporated:** 2012-07-11
- **Location:** London
- **Industry:** 72190 Other research and experimental development on natural sciences and engineering

## Why it went into administration

- Funding withdrawn / unable to refinance

## From the administrators' statement

3.1 A significant intercompany debt is due to SME by SMEC and SME was reliant on SMEC for ongoing trade. In addition, SME had provided guarantees to a number of creditors of SMEC. Therefore, following the insolvency of SMEC, the directors of the Company sought advice to assist in assessing the impact of the SMEC insolvency on SME. Johnston Carmichael LLP was engaged by the Company in May 2023 to provide adhoc restructuring and insolvency advice, and to consider the impact of the Canadian insolvency process on SME. Johnston Carmichael LLP received a payment of £3,525 (excluding VAT) for services provided to the Company under the terms of its engagement letter.

3.2 Prior to the administration, SME had provided a guarantee to Reconcept, SMEC’s largest, secured creditor in support of any shortfall that Reconcept may incur in relation to SMEC. The terms of the guarantee appear to require Reconcept to exhaust recoveries against SMEC before any shortfall can be sought from SME under the guarantee. The shortfall due to Reconcept could not, however, be accurately quantified as it is wholly dependent on the realisation of the value in SMEC’s estate by Deloitte, and the prospects of a sale of the Canadian operation as a going concern, the outcome of which was not anticipated to become clear for several months.

3.3 It became apparent that SME may not be in a position to meet any significant shortfall due to Reconcept following SMEC’s insolvency, if demanded. In addition, due to its insolvency, SMEC was unable to meet a a scheduled payment due under a finance agreement which related to SMEC’s acquisition of the ‘Tidal Pioneer’ vessel in Canada. SME was liable to meet that payment and future payments due to the finance provider in the event that SMEC was unable to do so and, in recognition of SME's liability for these payments, it was determined that SME was insolvent and that the directors should take steps to have the Company placed into administration.

Statement of proposals: https://find-and-update.company-information.service.gov.uk/company/08139012/filing-history/MzM5NTM3NjQzOWFkaXF6a2N4/document?format=pdf&download=0
Companies House register: https://find-and-update.company-information.service.gov.uk/company/08139012

Contains public sector information from Companies House, licensed under the Open Government Licence v3.0.