April 1 (SeeNews) - Renewable Energy Holdings Plc (LON:REH) on Thursday said it has filed a winding up claim with the High Court of Justice of the Isle of Man to commence liquidation proceedings.
The Isle of Man-registered firm is the developer of the up-to-89.1-MW Mynydd y Gwynt wind project in mid Wales, which was refused planning permission in November 2015, in line with the UK government's policy to end subsidies for onshore wind. The company already signalled in December it was likely to initiate insolvency proceedings during the first quarter of 2016.
The liquidation decision comes after the board has concluded the firm has no prospect of repaying its outstanding debts of GBP 10 million (USD 14.3m/EUR 12.6m), including accrued interest. The loans were borrowed from UIL Limited, formerly Utilico Investments Ltd.
A GBP-4.25-million facility was agreed in 2013 for the purpose of allowing REH to progress the planning application for the Mynydd y Gwynt wind farm. There is an oral hearing for permission to apply for judicial review of the wind farm's refusal scheduled for June 2016 but the company said that even if its efforts in that respect were successful, there was no likelihood of a new grid sub-station being constructed in mid Wales within the life of any permit.
REH said its remaining assets were currently valued at considerably less than its outstanding debts. The company has a stake in Carnegie Wave Energy Ltd, which was worth GBP 2.2 million at Thursday's close.
(GBP 1.0 = USD 1.434/EUR 1.260)