Failed energy installer Engenera Renewables left £2.3m owed to more than 110 creditors, new documents reveal.
The Newcastle-based provider of solar, battery, air and ground source heat pumps for homes and businesses ceased trading earlier this year after administrators were called in amid cashflow difficulties. About 25 staff were subsequently made redundant.
Fresh filings at Companies House show a list of creditors - including SME suppliers from the North East - have estimated claims of more than £2.3m while HMRC claims it is owed more than £964,000. Administrators at Leonard Curtis have estimated the firm has a deficiency of £3.48m.
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While staff are expected to receive more than £22,000 owed in wages, holiday pay and pension contributions, the administrators consider it unlikely the unsecured creditors will receive anything.
The insolvency experts also painted a picture of events in the lead up to the collapse of the hotly tipped company which is linked to a £100m green bond platform, designed to give homes owners and businesses the opportunity to get renewables technology installed at little or no up front cost.
A chronology of the firm shows it had been profitable, at least up to the end of 2022 when it had turnover of £14m and and operating profit of £251,851, with growth prior to that. But trading took a hit shortly thereafter with cash flow difficulties being brought on by a disputed debt with HMRC of more than £500,000, compounded by the rising cost of materials and other overheads.
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In summer 2023, bosses brought in advisors from Leonard Curtis who helped Engenera negotiate a "time to pay" agreement with the tax office, and carried out a review of the business along with efforts to secure investment. Later in the year a hunt for a buyer was launched, generating interest from 24 parties.
Heads of terms were reached with one potential buyer who was thought to have funds to carry out the deal and provide working capital to keep Engenera afloat. Those funds were expected by January this year but did not materialise, despite assurances from the buyer including to creditors.
Leonard Curtis said: "By February 22, 2024, the directors felt they were unable to rely upon the funds promised by the Investor and as such instructed lain Nairn and Sean Williams to prepare to take an appointment as administrators. In the face of further promises of payment from the investor, the appointment was delayed for a short space of time to ensure that the opportunity to remain solvent was not missed.
"On February 28, 2024, the company was served notice that a creditor intended to issue a winding up petition against the company forthwith. Discussions were held with the investor to identify whether solvency could be maintained and the cash investment was again promised. The directors felt unable to leave the company unprotected following the failure of funds to arrive the following morning and took the steps to appoint administrators on February 29, 2024."