March 15 (Renewables Now) - Australian wave power specialist Carnegie Clean Energy (ASX:CCE) has entered into voluntary administration a few days after the Western Australia government cancelled a crucial financial assistance agreement.
The company announced on Friday that Richard Tucker and John Bumbak of KordaMentha Restructuring were appointed as voluntary administrators. They are holding discussions with key stakeholders in an attempt to obtain funding, while also pursuing a recapitalisation via a Deed of Company Arrangement (DOCA), a bourse filing says.
The voluntary administration process concerns not only the parent company but also its subsidiaries EMC Co Pty Ltd, Energy Made Clean Pty Ltd and EMC Engineering Australia Pty Ltd. Carnegie has been trying to get rid of its loss-making Energy Made Clean (EMC) solar and microgrid business for some time now, and even reached an agreement with Sydney-based investment house Tag Pacific Ltd (ASX:TAG) last year, but it was eventually terminated.
Earlier this week, Western Australia cancelled the financial assistance agreement that was supposed to support Carnegie’s wave energy demonstration project off Albany. The state government explained it had determined that Carnegie would not be able to complete the project in time.
Regional development minister Alannah MacTiernan blamed the termination of the deal on the proposal to change federal research and development (R&D) tax concessions, as well as on Carnegie’s recent asset write-downs and losses from other operations.