The meeting of creditors leads to a favorable result for Enova companies – Insolvency/Bankruptcy
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Enova Community Energy and Enova Energy creditors voted in favor of deeds of corporate arrangement (DOCA) for each company that will allow the entities to avoid liquidation and facilitate a better return for creditors.
The promoter was Energy Locals who purchased parts of the business and structured the purchase in the form of DOCAs for each entity. For Enova Energy’s creditors, its DOCA also allows for a return to creditors when a payment is made to the DOCA when former Enova Energy customers switch to Energy Locals.
Cathro & Partner Director Simon Cathro, who manages the voluntary administration, commented: “This is the outcome that we have recommended and are working towards with Enova. Last resort and move to connect with Energy Locals. With these past customers doing this, it translates into funds going to the Enova DOCA and a better return for Enova Energy’s creditors.
According to Enova Managing Director and CEO Felicity Stening, today was a positive step forward in what has been a disappointing development for the company.
“Today we have developed a plan to deliver a good return to creditors. While we are deeply saddened by the events of the past few months, we are committed to meeting our obligations and ensuring our stakeholders are taken care of. charge.”
Last month, the Enova Community Energy Board announced that Enova Community Energy and Enova Energy, its retail electricity arm, had been placed into voluntary administration.
This announcement follows a difficult period where Enova was unable to obtain adequate coverage of wholesale energy prices following the termination of an agreement with Diamond Energy and its limitations due to a cap on customer prices.
Although Enova’s board and management team worked tirelessly to explore all options to ensure the continuation of the business, voluntary administration was the last resort to prevent transactions in the event of a insolvency.
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