One of the largest British solar park owners who was put into administration a few months ago owed £692 million to an English local council.

Toucan Energy Holdings had a portfolio of 53 solar parks with an estimated combined capacity of 513MW across England, Wales and Northern Ireland.

It was reported that Thurrock Council in Essex invested £655 million in the company – Interpath Advisory, administrators of Toucan Energy, said along with the £655 investment, it was also owed £37 million in interest payments.

In documents published by Interpath Advisory and seen by ELN, it is stated: “The company’s majority creditor is Thurrock Borough Council, owed £655 million from various bond issuances plus accrued interest of £37 million, totalling £692 million.”

In a document outlining proposals, administrators said Interpath has hired advisers from KPMG to oversee an auction of the 53 solar parks.

Administrators of Toucan Energy added that “this transaction will likely be the UK’s largest solar transaction in 2023” and explained that “detailed work to prepare the assets for sale will be undertaken during the first quarter of 2023”.

Interpath confirmed that “following a competitive process, we have selected KPMG as lead Merger and Acquisition adviser to work alongside us in the sale process.”

In a statement issued when Toucan Energy entered into administration on 11th November, Councillor Mark Coxshall, Leader of Thurrock Council, said: “The solar farms held by Toucan continue to generate income and as the primary creditor Thurrock Council will be able to seek to recover the value of investment.

“I am confident that the decision to place Toucan into administration is a significant step to reducing our overall debt,”

ELN approached KPMG for comment – the consultancy declined to comment.

ELN has contacted the Department for Levelling Up, Housing and Communities for comment.

Article source: https://www.energylivenews.com/2023/01/04/solar-firms-debt-to-local-authority-rises-to-692m/