Growth Power Limited (08885047): administration
- Status
- Administration ended
- Administration began
- 2017-09-28
- Administrators
- Milan Vuceljic, Richard Keley
- Administrators' firm
- Moorfields
- Incorporated
- 2014-02-10
- Location
- London
- Industry
- 35110 Production of electricity
Why it went into administration
- Bad debts / customer insolvency
- Regulatory change or action
From the administrators' statement
Due to the Company operating to support a single customer, non-payment by YGP presented the Company with a prospective risk of developing working capital issues. The agreement with YGP was subject to long-running disputes from the outset and as a consequence, YGP began to either pay the Company late or withhold payments altogether. An attempt to resolve the dispute at mediation failed and the Company's cash flow was constrained to the point that it could no longer afford to maintain the CHPs at YGPs sites, which ceased to be operational in June 2017. The Company agreed to continue to provide gas and power to YGP obtained from energy supplier ENGIE on “pass-through” arrangements at cost on the basis that YGP made payment for these supplies. However, YGP continued to refuse to make any payments, citing the continued unresolved dispute and claiming to be owed significant monies by the Company which extinguished the trading debt.
Although management marketed the Company for sale from July 2017 in an attempt to find a solvent solution, no purchaser could be located. Since the Company did not have the necessary working capital to continue trading, the Board resolved that the Company should be placed into Administration in the best interests of its creditors.
My firm provided general advice to the Board of the Company regarding its financial position and the options available. | have fully considered the relevant guidance issued by my regulatory body and | am satisfied that the existence of this professional relationship does not create a conflict of interest or a threat to my independence and therefore, | considered myself able to accept the proposed appointment as Administrator of the Company.
Administrators' statement of proposals (2017-12-05) · Companies House register