Renewable energy investment firm Solar 21 was due to repay Irish investors in one of its key projects more than £57m by the end of last month, substantially more than stated in recently published financial accounts.
he firm declined to say when asked how much has since been repaid but said efforts to secure a refinancing deal faced “various pressures” including the war in Ukraine.
In February the Sunday Independent revealed Solar 21 was seeking “financing solutions” after delaying repayments of loan notes as they come due to Irish investors from which it had raised €250m for a now-delayed renewable energy project.
The energy-from-waste plant that the Irish firm is developing in Melton, East Yorkshire, had been delayed by “unprecedented” challenges, including Brexit and Covid. In February the company told this newspaper that at that stage €10m of repayments to its investors had been delayed.
“In the unlikely event of a prolonged delay, extending beyond 24 months, the assets of the fundraising and project companies may be called upon to satisfy the liabilities,” it had warned brokers in a memo.
Responding to queries in recent days, Solar 21 chief executive Michael Bradley said the Ukraine war had added to the complications it faces to find a financing solution to fund the repayments to investors.
“Progress is ongoing, but the market has been subject to various pressures including the war in Ukraine,” he said.
Bradley said the firm “remain committed to finding a suitable financing solution in regard to EFW21 Project 1,” a reference to the East Yorkshire scheme.
Financial accounts lodged last week for Solar 21’s subsidiary project company, EFW 21 Renewable Energy Ltd, showed that, as of April 30, 2021, £18.6m was owed to investors within one year, with £16.1m of interest payable.
When asked how much was paid within the year and how much was now due, Bradley said: “We are not at liberty to discuss the specifics of the investments which are sensitive to ongoing negotiations.”
In a subsequent statement Bradley said: “It appears that there has been an administration error in the number stated with regards to the liabilities that are due within one year (in the 12 months from 30th April 2021). Whilst the overall position as presented in the accounts is correct and remains unchanged the amount due within one year (from the 30th April 2021) is £57,354,082. This will be rectified immediately with the CRO.”