Nov 14, 2014 - Australian renewable energy firm CBD Energy Ltd (NASDAQ:CBDE) today said it and solar installation unit Westinghouse Solar Pty Ltd have entered voluntary administration.
The company pointed out that thanks to a funding facility provided by the secured creditor, Westinghouse Solar Pty will be able to continue work and to service its backlog of residential and commercial contracts in Australia without interruption.
All other subsidiaries, including Westinghouse Solar Inc in the US and Westinghouse Solar Ltd in Britain, remain unaffected.
Earlier this week, CBD said it has been notified by Nasdaq that it does not comply with its listing requirements due to its failure to timely file its annual report on Form 20-F. The company has been unable to file the report because of a pending investigation of accounting matters. As announced in October, CBD has determined that its audited financial statements for fiscal years 2012 and 2013, as well as the unaudited interim report for the six months through December 2013, cannot be relied upon.
CBD Energy appointed as administrators Said Jahani and Trevor Pogroske from Grant Thornton. The company’s plan is to reorganise its affairs “as quickly as practicable” via a deed of company arrangement under Australian Corporations Law. Also, it has retained Joseph Scarcella, insolvency and restructuring Partner at Ashurst - Australia, to assist in negotiating and preparing a potential restructure.
“As part of or shortly following the administration process, the reorganized company expects to restate its historical accounts as necessary and ensure that its regulatory filings are brought up to date,” it said today. The firm is also preparing a plan to regain compliance with the Nasdaq listing rules.
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