Sun Cable enters voluntary administration

4C Offshore | Tom Russell
By: Tom Russell 11/01/2023 Sun Cable
Sun Cable Pty Ltd announced it has made the decision to enter voluntary administration. The company is currently developing the AAPowerLink, which aims to harness and store solar energy from the Northern Territory in Australia and transmit it to Darwin and Singapore via a high voltage direct current (HVDC) cable transmission system.

The company claims the voluntary administration process "will now unlock a path forward for the Company to access additional capital for continued development of its marque project, the Australia-Asia PowerLink (AAPowerLink) and progress the next stage of its development portfolio in a strong market".

Christopher Hill, David McGrath and John Park of FTI Consulting have been appointed as voluntary administrators of the Company. The administrators have not been appointed to any of the Company’s subsidiaries. According to Sun Cable, the Administrators intend to work with the Company’s management team and key stakeholders to determine appropriate next steps for the business. It outlined that that will likely involve a process to seek expressions of interest for either a recapitalisation or sale of the business.

Sun Cable confirmed that the appointment followed the absence of alignment with the objectives of all shareholders. It revealed whilst funding proposals were provided, consensus on the future direction and funding structure of the company could not be achieved.

Founder and CEO of Sun Cable, David Griffin said: “Sun Cable has made extraordinary progress in developing the AAPowerLink. This project remains well placed for completion. As we have progressed our work, the demand for delivering reliable, dispatchable 24/7 renewable energy in the NT and the region has risen materially. Sun Cable looks forward to developing and operating the projects to meet this demand.”

Chair of Sun Cable, Mike Cannon-Brookes said: “Sun Cable has achieved so much since it was founded in 2018. 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.”

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