Embattled energy firm forced to call in administrators
Troubled energy firm Flowgroup has been forced to call in the administrators after talks with its creditors came to a standstill.
The Chester based gas and electricity supplier has been struggling for some time and 12 months ago its chief executive Tony Stiff stepped down.
Tony Stiff
The environmentally friendly business, which has around 250,000 customers, launched a turnaround plan which included cost-cutting measures.
But this morning the AIM listed business announced on the Stock Market that it has been forced to call in the administrators.
The statement said: “Further to previous announcements regarding ongoing negotiation with creditors, the company provides the following update.
“Flowgroup sold its principal subsidiary Flow Energy Limited on 1 May 2018. Since that time, the company has explored the possibility of a reverse takeover but has been unable to identify any viable opportunities.
“The board has today appointed Geoff Rowley and Philip Armstrong of FRP Advisory LLP as joint administrators of the company.
“Cenkos Securities plc, the company’s nominated adviser, has resigned with immediate effect.”
Trading in the company’s shares has been suspended.
Unless the company appoints another nominated adviser within one month the admission of its securities to trading on AIM will be cancelled.
The statement added: “Given the circumstances, the company believes that it is unlikely to appoint another nominated adviser and therefore expects that cancellation will occur.
“The joint administrators will correspond with the company’s creditors and shareholders regarding the administration process in accordance with their duties.
“The company reiterates that it does not expect any value to be distributed to shareholders in any event.”
The news comes eight months after Flowgroup received an emergency cash injection of £5m.
The loan to Flow Energy Limited (FEL) came from the group’s loan note holders, Palm Ventures and Lombard Odier Asset Management.
At the time the firm said that it was operating in a highly competitive market which is continuing to evolve rapidly.
The company was created 20 years ago and launched an environmentally friendly boilier.
