AAPowerLink’s Sun Cable in voluntary administration

Australia-Asian Powerlink solar farm (sun cable administration sun cable sale AAPowerlink)
Image: Sun Cable

Sun Cable, the developer of the $21-billion AAPowerLink project, has entered voluntary administration as its two main backers, Australian billionaires Mike Cannon-Brookes and Andrew Forrest, failed to agree on a new round of funding.

Reuters said Singapore-based Sun Cable entered voluntary administration less than a year after raising $210 million from the two billionaires for the Australia-Asia PowerLink project.

Related article: Cannon-Brookes to chair $30b Sun Cable project

“While funding proposals were provided, consensus on the future direction and funding structure of the company could not be achieved,” Sun Cable said in a statement.

Tech billionaire and climate activist Cannon-Brookes, who became chairman of Sun Cable in October, said he remained confident in the project.

It involves building a 20GW solar farm with 42GWh of energy storage in northern Australia and the world’s longest undersea cable to deliver power to Singapore, and eventually, Indonesia.

Construction was due to begin in 2024.

“I fully back this ambition and the team, and look forward to supporting the company’s next chapter,” he said in the statement.

It is still possible Squadron could put together a funding deal for the administrators, said a person familiar with the company’s thinking who sought anonymity because of confidentiality provisions.

Related article: Sun Cable and partners form Asia Green Grid Network

Last year’s capital raising of $210 million included milestones that have not been met yet, meaning that not all of that funding was made available.

Future steps are likely to involve voluntary administrators FTI Consulting seeking fresh capital or selling the business entirely, Sun Cable said.

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