The directors of Renewable Energy Holdings believe the company is likely to start insolvency proceedings in the first quarter of next year.
The directors are in discussions with Utilico regarding an outstanding loan to determine whether or not it can remain trading in light of the government’s rejection of the Mynydd y Gwynt wind farm.
The company, the trading of whose shares on AIM remain suspended, has agreed with Utilico to extend the maturity terms on its loan with the company in order to allow it to lodge a judicial review of the rejection. It said the rejection ignored the Planning Inspectorate’s recommendation.
The maturity dates of the outstanding loans have been amended from 31 December 2015 to 31 March 2016.
REH said all other terms remain the same as previously announced. The amount drawn down at present from the loan facility of £4.25m is £4.22m and the 2009 loan is fully drawn.
Image: Morgue File
REH heading for insolvency
DECC rejection of Mynydd y Gwynt wind farm pushes company to the brink
By EBS