Withdrawal of major investor, subsequent “cash crisis” cited in Energy Renaissance’s collapse

The administrator to Energy Renaissance has given “withdrawal of a major investor from a planned funding subscription program” as the reason for the battery maker's difficulties.

According to a short statement from Jirsch Sutherland provided to @AuManufacturing on Sunday, the withdrawal “left the company in a cash crisis“. 

Stewart Free and Bradd Morelli of Jirsch Sutherland were appointed joint administrators of ER Industrial Pty Ltd (formerly Energy Renaissance Pty Ltd) on Wednesday last week.

In their statement, Jirsch Sutherland explained that the appointment concerns the company’s industrial battery manufacturing business, with Energy Renaissance’s IT and defence operations continuing to operate as normal.

“Our appointment was predicated on the withdrawal of a major investor, which left Energy Renaissance in a difficult financial position,” Free said

“During the course of our investigations, we will also be reviewing whether there is any legal recourse available in relation to this decision.”

Free added that administrators are “actively liaising with both State and Federal Governments to explore potential pathways forward.

“These may include recapitalisation or a merger to preserve the significant value and opportunities within the business. We greatly appreciate the interest and support being shown at this time. It’s still early days, and our investigations into the company’s financial position and future options are ongoing.”

Energy Renaissance was established in 2015 and marked a decade anniversary last month. It runs a factory at Tomago, NSW.

A first creditors' meeting will be held on Friday this week.

Picture: credit energyrenaissance.com/media/

Further reading

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