Background
A gas turbine power plant at Baglan Bay, South Wales, is part of the Baglan group of firms.
The ultimate parent company went into administration in June 2020, and the power plant stopped producing energy in July 2020.
Through a substation on the property known as the private wire network, power is provided to consumers, which includes the Baglan Energy Park.
The 180-acre Baglan Energy Park still houses several other enterprises and organisations, and the Official Receiver has made an effort to keep all significant stakeholders informed of developments.
Liquidation
The fundamental responsibility of a liquidator, as defined by the insolvency laws, is to see that the assets of the company are realised and allocated to creditors. The law further states that a liquidator is only permitted to operate a company’s operations when doing so is helpful to the company’s winding up.
Since his appointment in March 2021, the Official Receiver has maintained the supply of power to the Energy Park from the private wire network in order to permit an orderly wind-down of operations at the facility. The Official Receiver is personally responsibility for the upkeep and operation of the high voltage power lines, which come with all the corresponding dangers to health and life.
The Official Receiver and Special Managers have worked tirelessly with important stakeholders to keep them informed of developments in real time. They have also clarified the Official Receiver’s statutory limitations on his or her ability to maintain the supply of electricity while emphasising the need for customers and stakeholders to quickly develop backup plans.
This liquidation has been difficult and complex, and it still is. The Official Receiver has also completed other key tasks at the site as part of the closure plan, such as clearing the area of dangerous materials and depressurizing the 11.8 km high pressure gas pipeline.
Latest developments
After hearing arguments in court contesting the Official Receiver’s decision to stop providing power, the Court rendered a ruling rejecting the arguments and allowing the applicants permission to appeal. The hearing on the appeal has not yet been scheduled. The court further mandated that consumers’ access to energy must be maintained until the appeals procedure is over or until they ask for the supply to be cut off.
The Official Receiver is happy to report that the Baglan customers now have access to a backup electrical supply through either a connection to the new Western Power Distribution network or the use of portable generators.
The Baglan group of Companies no longer provides power to consumers as of 8 July 2022 as a result of receiving requests for customer disconnection. The de-energization works and final closing operations will be completed after the Official Receiver engages with contractors, after which the facility will be disclaimed.
The Baglan group of Companies’ employees received appreciation from the Official Receiver for their dedication during the liquidations as well as for carrying out operations and closing down the Baglan site safely.
If you are a customer or creditor of the Baglan group of companies, please contact the Special Managers via email: baglancustomers@interpathadvisory.com.