Perth wave energy developer, Carnegie Clean Energy (ASX: CCE) appears to have avoided oblivion after creditors approved a restructuring and recapitalisation plan to save the business.
The plan, developed by KordaMentha Restructuring acting as administrators of Carnegie, will see secured creditors swapping debt for equity and the raising of $5 million.
Unsecured creditors will likely receive 10 cents in the dollar, according to a statement to the stock exchange.
As reported in @AuManufacturing Carnegie went into administration in March, largely because of write-downs by its solar micro-grid operation Energy Made Clean, with the company having only a few thousand dollars in the bank.
Directors are seeking to divest the business, which recently completed two micro-grid projects in Western Australia, both apparently troubled.
Carnegie also saw the WA government terminate a mooted $16 million financial assistance package for a wave energy project at Albany, WA. This in turn was sparked by changes to federal R&D assistance.
Now creditors have accepted a planned Dead of Company Arrangement to restructure over the next three to four months.
KordaMentha’s Richard Tucker said: “This is a significant step for Carnegie as it strives to emerge from voluntary administration in a well-capitalised condition.
“(It will) continue its core business of transforming the global renewable energy market through its world-leading wave energy technology.”
Major shareholders and directors advanced cash to keep the business going in administration, and will emerge with equity.
The new company will be re-listed and will carry some debt from the former structure.
Picture: Carnegie Wave Energy
Subscribe to our free @AuManufacturing newsletter here.