Carnegie could be saved

Carnegie CETO 6
Carnegie Clean Energy's CETO 6 wave energy project

Creditors of Carnegie Clean Energy Limited have unanimously accepted a restructuring plan to save the company and relist on the Australian Securities Exchange.

The plan was put to a meeting of creditors today by KordaMentha Restructuring partners Richard Tucker and John Bumbak, who were appointed Voluntary Administrators of Carnegie and a number of its subsidiaries on March 14, 2019.

The plan, outlined in a Deed of Company Arrangement (DOCA), provides for a recapitalisation of the company, a restructure of its balance sheet and a relisting over the next three to four months. The target for capital raising is up to $5 million.

Major shareholders and directors who advanced cash to keep the company going before and after administration will swap debt for equity, with some debt being restructured and carried over to the relisted company. Unsecured creditors can expect a return of up to 10 cents in the dollar.

Mr Tucker said, “This is a significant step for Carnegie as it strives to emerge from Voluntary Administration in a well-capitalised financial position, to continue its core business of transforming the global renewable energy market through its world leading wave energy technology”.

Further updates will be provided during the process. Creditors should watch for more information.

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