The High Court has appointed provisional liquidators to a Co Tipperary renewable energy business after a rescue plan relying on external investment fell through.
Woodco Renewable Energy Ltd, which provides biomass and solar power facilities, encountered financial difficulty following delays to various projects the company was involved in. These delays arose from external factors, such as planning application processes, the company says.
According to court documents, these delays – as well as other factors – resulted in a “material deferral” of expected revenue at the company.
Barrister Michael O’Sullivan, moving a petition to appoint provisional liquidators on behalf of Woodco on Friday, said the firm was “demonstrably insolvent”.
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Noting the firm’s “unfortunate” financial position, Judge John Jordan said he was satisfied to make orders appointing Eoin Massey and Anthony Glennon of Friel Stafford accountants as provisional liquidators.
Woodco, with offices in Donaskeigh, Co Tipperary, was established in 2017.
In its petition to the court, the company said directors in April sought the assistance of accountants to draft a rescue plan on account of financial difficulties.
Those difficulties arose due to “accumulated losses incurred, the diminution of work pipeline and delays to existing and prospective projects”.
A plan contingent on external investment was drafted, with accountants expressing the opinion the company had a reasonable prospect of survival. Following this, the company procured the support of potential investors to the tune of €500,000.
However, when a number of customers withdrew their contracts with the company, the group of investors withdrew their interest.
The directors subsequently opted to seek the appointment of provisional liquidators.
In April, the company owed €250,319 to Revenue.
The company previously employed 19 people, but that number has been reduced on account of its financial difficulties.
The case returns later this month.
