Sequoia could be hit by busted Bulb – Sequoia Economic Infrastructure notes press statements that Bulb Energy Ltd (“Bulb”) is supportive of entering into the special administration regime established by the Energy Act 2011. If this were to occur, the parent company of Bulb, Simple Energy Limited would enter into normal administration.
The investment adviser remains actively engaged with all the relevant Bulb stakeholders. Sequoia Economic Infrastructure has a loan to Bulb of £55.0m (approximately 2.9% of NAV as at 31 October 2021) and this loan is guaranteed by Simple.
The primary objective of the special administration regime is for the administrator to ensure continuity of energy supply to consumers. In this regard, the investment adviser has been working openly and constructively with all stakeholders including Ofgem to ensure the best interests of customers and employees.
The loan is senior ranking debt, secured on all the assets of Bulb and Simple. As of today, the value of Bulb’s and Simple’s assets are in excess of the amount of the loan. However, one consequence of special administration is that, whilst it is continuing, secured lenders to Bulb are unable to enforce their security. The substantial assets of Simple are outside the special administration process and are also collateral for the loan.
Further information will be provided in due course.
SEQI : Sequoia could be hit by busted Bulb