KPMG Statements

Administrators appointed to Calon operating companies

Monday 24 August 2020

Jim Tucker and David Pike from KPMG’s Restructuring practice were appointed Joint Administrators of a number of operating companies of the Calon Energy group today, 24 August 2020.

This follows the appointment of administrators over the holding company or ‘Topco’, Calon Energy Limited, on 24 June 2020.

These administration appointments include Severn Power Limited, Calon Energy (Severn) Limited, Sutton Bridge Power Generation, Sutton Bridge Power Systems (London) Limited and Calon Energy (Sutton Bridge) Limited.

Calon Energy Group is an Independent Power Producer (IPP) in the UK, with a 2.3 GW Combined Cycle Gas Turbine (CCGT) portfolio operating across three sites:

  • Severn Power Station, Newport, South Wales (850 MW);
  • Sutton Bridge Power Station, Sutton Bridge, Lincolnshire, England (850 MW);
  • Baglan Bay Power Station, Port Talbot, South Wales (582 MW).

Today’s appointments include the operating companies for the Severn Power and Sutton Bridge Power stations, which employ 68 staff. The operating company for the Baglan Bay Power Station, which employs a further 38 staff, is not subject to administration appointments at this time and remains under the control of its directors.

Jim Tucker, restructuring partner at KPMG and joint administrator, said:

“Following the appointment of administrators over Calon Energy Limited, the group’s Topco, on 24 June, CEL’s administrators have worked closely with the senior management team and key stakeholders to consider a number of options in relation to CEL’s operating subsidiaries.

“The recent and ongoing challenges facing the UK power market mean that these power stations are currently not generating sufficient returns to continue trading effectively. It has therefore been determined that the power plants will be placed into a safe and dormant state of managed preservation to provide more time to explore all options in order to recover value for the group’s creditors.”

 

Administrators appointed to Calon Energy Limited

Wednesday 24 June 2020

Jim Tucker and David Pike from KPMG’s Restructuring practice were appointed Joint Administrators of Calon Energy Limited (“CEL”) today, 24 June 2020.

CEL is the holding company of the Calon Energy Group (“CEG”), a leading Independent Power Producer (IPP) in the UK, with a 2.3 GW Combined Cycle Gas Turbine (CCGT) portfolio operating across three sites.

The operating companies below CEG, which own and operate the Severn, Sutton Bridge and Baglan Bay power stations, are not in any insolvency process and continue to trade under the control of their respective directors and management teams. All CEG employees remain employed and will continue to be paid as normal.

Jim Tucker, restructuring partner at KPMG and joint administrator, said: “Although we have been appointed administrators over the Topco to the group, the group’s power stations continue to operate as normal, outside any insolvency process, under the control of their directors. We will be working with the directors and senior management in the coming months to develop a new business plan for the power stations, before finalising the timeline to commence a sales process.”

 

For further information, please contact:

Katy Broomhead, Senior PR Manager

Tel: 0161 264 4623 / 07824 537963

Email: katy.broomhead@kpmg.co.uk

KPMG Press Office: 020 7694 8773

 

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 21 offices across the UK with approximately 17,600 partners and staff.  The UK firm recorded a revenue of £2.40 billion in the year ended 30 September 2019. KPMG is a global network of professional firms providing Audit, Tax, Legal and Advisory services. It operates in 154 countries and has 200,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such.

 

James Robert Tucker and David John Pike were appointed as Joint Administrators of Severn Power Limited, Sutton Bridge Power Generation, Calon Energy (Sutton Bridge) Limited and Calon Energy (Severn) Limited on 24 August 2020 and Calon Energy Limited on 24 June 2020 (together the ‘Companies’).

 

The affairs, business and property of the Companies are being managed by the Joint Administrators.

The Joint Administrators act as agents for the Companies and contract without personal liability.

James Robert Tucker and David John Pike are authorised to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales

 

Severn Power Limited is registered in England and Wales No 05392552.

Sutton Bridge Power Generation is registered in England and Wales No 02586357.

Calon Energy (Sutton Bridge) Limited is registered in England and Wales No  08296825

Calon Energy (Severn) Limited is registered in England and Wales No 08786682

Calon Energy Limited is registered in England and Wales No 09020390.

 

We are bound by the Insolvency Code of Ethics.