Renewable energy startup Sun Cable has entered voluntary administration in what it described as a “difficult” decision following “the absence of alignment with the objectives of all shareholders.”
“Whilst funding proposals were provided, consensus on the future direction and funding structure of the company could not be achieved,” a company statement read.
The Australian described the news as a “spat” between software billionaire and Sun Cable chairman Mike Cannon-Brooks and Fortescue iron-ore magnate turn green hydrogen enthusiast Andrew Forrest. Whether or not the two major players have had a “spat” is not clear, but Cannon-Brooks’ optimism surrounding the company’s future suggests entering administration is primarily a strategy to get around the impasse.
Cannon-Brookes said he was confident the cornerstone Australia-Asia PowerLink project, which proposes to build up to 20 GW of solar and 42 GWh of battery storage in the Northern Territory, providing power to Singapore via unprecedented undersea cables, still has a future. “I’m confident it will play a huge role in delivering green energy for the world, right here from Australia. I fully back this ambition and the team, and look forward to supporting the company’s next chapter.”
Likewise, Sun Cable founder and CEO David Griffin described the megaproject as remaining “well placed for completion.”
FTI Consulting has been named as Sun Cable’s voluntary administrator. FTI Consulting’s Christopher Hill, David McGrath and John Park will now work with Sun Cable’s management to determine the company’s future.
Recapitalisation or the sale of the business appear to be likely moves.
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