Solar farm company Toucan Energy owed £692 million to an effectively bankrupt English local council when the business collapsed, administrators revealed.
(Bloomberg) — Solar farm company Toucan Energy owed £692 million to an effectively bankrupt English local council when the business collapsed, administrators revealed.
Interpath Advisory, which was appointed administrator to Toucan Energy Holdings 1 Ltd. in November, said in new documents that along with the £655 million Thurrock Council had invested in the solar farms, it was also owed £37 million in interest payments.
Interpath is hoping to recover losses through the sale of the solar farms, and has hired advisers from KPMG to oversee an auction of the 53 sites, according to a document outlining its proposals.
Thurrock Council said in November that it was in financial distress and barred itself from any non-essential spending. The local authority in Essex, near London, disclosed a £470 million black hole in its budget following a series of investments that appear to have backfired.
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The council provides public services to 176,000 residents, with families in the area facing the prospect of higher taxes while it seeks a bailout from the UK government.
Interpath said it hoped to complete the sale of the farms, which were expected to generate revenue of more than £72 million in 2022, in the second half of this year.
A spokesperson for Thurrock wasn’t immediately available to comment.
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