Creditors Meeting Achieves Favourable Result for Enova Companies

Creditors for Enova Community Energy and Enova Energy have voted in favour of Deeds of Company Arrangement (DOCA) for each company that will see the entities avoid liquidation and facilitate a better return for creditors.

27 July 2022

Creditors for Enova Community Energy and Enova Energy have voted in favour of Deeds of Company Arrangement (DOCA) for each company that will see the entities avoid liquidation and facilitate a better return for creditors.

Creditors for Enova Community Energy and Enova Energy have voted in favour of Deeds of Company Arrangement (DOCA) for each company that will see the entities avoid liquidation and facilitate a better return for creditors.

The proponent was Energy Locals who purchased parts of the business and have structured the purchase in the form of DOCAs for each entity. For Enova Energy creditors, its DOCA also enables a return to creditors where a payment is made towards the DOCA when previous customers of Enova Energy switch to Energy Locals.

Cathro & Partner’s Principal Simon Cathro who is managing the voluntary administration commented, “This is the outcome we recommended and have been working towards with Enova. To date, Energy Locals have had a great response from previous customers of Enova switching away from the Retailer of Last Resort and moving to connect with Energy Locals. With these previous customers doing this, this results in funds being contributed towards the Enova DOCA and paying a greater return to creditors in Enova Energy.”

According to Enova Managing Director and CEO Felicity Stening, today was a positive step forward in what has been a disappointing development for the business.

“Today we made a plan forward to deliver a good return for creditors. While we are deeply saddened by the events over the past few months, we are determined to meet our obligations and ensure our stakeholders are looked after.”

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 followed a challenging period where Enova was unable to secure suitable wholesale energy price hedging following the ending of an agreement with Diamond Energy and limitations on it due to a cap on customer pricing.

Although the Enova Board and leadership team worked tirelessly to explore all options to secure the continuation of the business, voluntary administration was the last resort to prevent trading while insolvent.

Licensed by Copyright Agency. You must not copy this work without permission.

tester

Recent Articles

In the latest episode of The Cut, Simon Cathro plunges into the intricate world of insolvency law, discussing its multifaceted challenges and opportunities. With us on this episode is Emily Barrett, a partner in the restructuring and insolvency team at Johnson Winter Slattery. Emily’s deep understanding of the industry and

The biggest inclusion in the Federal Government’s 2024 Budget from an insolvency practitioner’s perspective was that recoveries to repay outstanding superannuation is now a consideration when the FEG recovery program is looking to fund liquidators’ recovery actions. The Fair Entitlements Guarantee (“FEG”) Scheme, administered by the Department of Education and

In the latest episode of The Cut, Simon Cathro delves into the intricacies of Deeds of Company Arrangement (DOCA) with guest Sam Dundas, a partner at King & Wood Mallesons. Together, they discuss the complexities of insolvency law, with a particular focus on DOCAs. Sam shares insights from his extensive