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Carnegie Clean Energy shareholders learn the true value of EMC as creditors meet in Perth.



Updated

April 17, 2019 19:02:14

The collapsed wave energy hope Carnegie Clean Energy had more than $ 3,000 in cash at the bank when they called managers last month.

Key points:

  • Carnegie entered the administration after canceling the wave energy contract in March.
  • The highest bid received for its solar microgrid company is $ 200,000
  • The manager said the company could be relieved by expanding its capital.

And they found that the four highest bid prices Sun Micro Grid companies attract are just $ 20,000. In 2016, there were $ 13 million in cash and stock shortages.

Three days after the Western Australian government canceled a contract to build a wave farm in the Great Southern region near Albany, Carnegie entered the voluntary administration in March.

Carnegie underwent several months of uncertainty over Carnegie's financial condition and the company posted significant losses and reductions in CETO's wave energy technology.

John Bumbak and Richard Tucker of KordaMentha were appointed managers of Carnegie and Energy Made Clean (EMC), a subsidiary of Solar Microgrid.

From mid-March, KordaMentha looked over the company's book and Carnegie said the bank had $ 3,198 in cash when he entered the voluntary administration on March 15.

The manager recommended that both Energy Made Clean Pty Ltd and EMC Engineering be liquidated and that the core Carnegie Wave energy business be recycled through capital expansion.

Shareholders voted unanimously to finalize EMC's business at the second creditors meeting.

KordaMentha raised four bids for Energy Made Clean Pty Ltd from $ 40,000 to $ 200,000, but has since withdrawn the highest bidder.

Part of EMC sold for $ 100,000

The manager said the company sold EMC's operating and maintenance business, which employed about half of its employees, to creditors for $ 100,000.

EMC Engineering did not expect to provide any revenue to creditors.

The creditors unanimously decided to raise at least $ 3 million to restructure the Carnegie business and renew the company. Australian Stock Exchange (ASX).

About half of the funds raised are used to pay managers, legal counsel and creditors.

The fund is expected to maintain the company for one year, employ about 10 people, and more than 20 people have already duplicated it from EMC.

KordaMentha expects Carnegie to return to moving by July when all goes according to plan.

Up to $ 10c for unsecured creditors

Bumbak said at the meeting that the capital restructuring plan will include a restructuring of the Carnegie balance sheet and a readjustment of ASX over the next three to four months.

Major shareholders who have fired cash to keep the company before and after the administration are expected to replace debt with equity. Some of the debt was restructured and carried over to a new company.

Unsecured creditors can expect to earn up to 10 cents in dollars.

Bumbak said he hoped to resolve the allegations made by joint venture partners and Lendlease, the company's largest shareholder.

Elements of the & # 39; material & # 39; that collapse the EMC

In a report on creditors, KordaMentha concluded that the acquisition of EMC was "important" in contributing to Carnegie's vast financial position and concluded that the conversion of solar companies to large-scale projects was a failure.

"It is clear that EMC 's financial performance has had a significant impact on Carnegie' s financial situation," Komamenda said.

The managers also were investigating all the crimes committed by the directors, but the investigation was still preliminary.

"We can not provide a final comment on possible criminal offenses," the report said.

Carnegie has been developing CETO wave energy technology for over 15 years and has commercialized this technology with tens of millions of dollars in taxpayer dollars from federal and state governments.

Former AFL president Mike Fitzpatrick, one of Carnegie's largest shareholders, attended the board and fired $ 2 million in financing.

Mooney and Partners, a subsidiary of Carnegie director and investor Grant Mooney and Asymmetric Credit Partners, will continue to meet the ongoing operating costs of salaries and rents in March We provided limited short-term funds.

subject :

Business Economics and Finance,

Tidal energy,

Environment,

Alternative energy,

industry,

energy,

Perth-6000,

albany-6330,

Wow

First published

April 17, 2019 14:17:05


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