Redbank Power Station placed in receivership facing $192 million debt
Tuesday, October 8, 2013/
The Redbank Power Station in the New South Wales’ Hunter Valley has been placed in receivership, following years of negotiations regarding the facility’s $192 million debt.
The plant’s owner, Redbank Energy, released a statement to the ASX in which it requested a trading halt due to the receivership. Trading is expected to resume tomorrow. The company itself is not in receivership.
The Redbank Power Station, or “Redbank Project”, is facing a significant amount of debt. In a statement, KordaMentha confirmed partners Martin Madden and Janna Robertson had been appointed as receivers.
“The appointment will not affect the operating activities of the power station,” it said. “The operation of the power station will continue as normal. Employees and other stakeholders will not see an impact to the operations as a result of these appointments.”
Madden also said management will continue to manage the operating activities “on a day-to-day basis”, while secured creditors have said they will “work constructively” with the receivership team.
The receivership follows several weeks, months and even years of debt negotiations.
Last week, Redbank said in a statement it would withhold the principal component of its schedule quarterly payment, and only pay it when an agreement regarding long-term debt restricting is finalised.
This would mean the company’s lenders could take “enforcement action”, it said.
“Redbank Project believes that a long-term debt restructuring is necessary to strengthen its financial condition,” it said.
In June of this year, Merrill Lynch purchased 4% of the debt from Bankwest, and the Bank of Scotland.
In 2011, the Redbank Project entered into a bank support agreement in 2011, which expired in 2012. While the support agreement had been extended between then and the release of the company’s annual report in May of this year, Redbank said continued extensions would be necessary to meet financial obligations.
In the annual report, released in May, Redbank also said Redbank Power Station contributed $12.1 million in EBITDA for the half year to December 2011, down from $15.4 million in the previous corresponding period due to “operating issues”.
Be honest about your situation: How vulnerability helps businesses thrive Sue Parker DARE Group founder
Own it: The 10 things you need to do to manage your personal brand Lisa Stephenson Who Am I Projects founder
Six invaluable lessons: What 20 years in aged care taught me about being an entrepreneur Natasha Chadwick NewDirection Care founder
An entrepreneurial superpower: Eight tips to help develop resilience Adala Bolto ZADI Training co-founder
Going through a lull? Five areas you should invest in when sales drop Tamara Alaveras and Sonia Majkic 3 Phase Marketing co-founders
Stop telling us how busy you are, it's boring and charmless Ian Whitworth Scene Change co-founder
Blandification™ and the state of modern branding Jeffrey Oley The Offices co-founder
Why you should find the right role for the right person — not the other way around Bruce Stronge Outfit founder