20/10/2016 - 13:13

Enerji calls in administrators

20/10/2016 - 13:13

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Perth-based thermal energy company Enerji has appointed KordaMentha as administrators after running into debt problems with one of its creditors.

Enerji calls in administrators
KordaMentha managing partner Cliff Rocke has been appointed as administrator of Enerji.

Perth-based thermal energy company Enerji has appointed KordaMentha as administrators after running into debt problems with one of its creditors.

KordaMentha representatives Cliff Rocke and Rahul Goyal have stepped in to take control of the troubled business, which entered a trading halt on Tuesday after receiving a letter of demand from one of its large creditors.

No details have yet been given as to what was said in the letter, however Enerji said that the letter was unrelated to its unresolved subscription agreement with contractor EC&M.

Enerji shares were supposed to have been reinstated to trade on the ASX, but they have now been suspended with the appointment of administrators.

It was only two months ago that the former head of power generation company Pacific Energy, Adam Boyd, was appointed chief executive of Enerji.

He replaced Andrew Vlahov, who stepped down after just over a year in the role.

Enerji’s once promising $4.5 million waste heat-to-power plant in Carnarvon suffered a number of write-downs between late 2013 and December 2014, with the company impairing the project by $816,284 initially, followed by a further $1.67 million deduction several months later.

By the end of 2014, it had recorded a further impairment on the project, reducing the value of the project to nothing.

The pilot plant took two years to develop and was hosted at Horizon Power’s Carnarvon power station.

The Carnarvon power station was later decommissioned.

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