Calon Energy Limited (CEL) has entered administration.
CEL is the holding company of the Calon Energy Group, an Independent Power Producer (IPP) in the UK, with a 2.3 GW Combined Cycle Gas Turbine (CCGT) portfolio operating across three sites: Sutton Bridge Power Station, Sutton Bridge, Lincolnshire (850 MW); Severn Power Station, Newport (850 MW); Baglan Bay Power Station, Port Talbot (582 MW).
The Group employs approximately 111 staff. It also holds the relevant consents to construct a new CCGT at Willington Development Site in Derbyshire, England.
The operating companies below CEL, which own and operate the Severn, Sutton Bridge and Baglan Bay power stations, are not in any insolvency process and continue to trade under the control of their respective directors and management teams. All members of staff remain employed and will continue to be paid as normal.
Jim Tucker and David Pike from KPMG’s Restructuring practice were appointed Joint Administrators of CEL today, 24 June 2020.
Jim Tucker, restructuring partner at KPMG and joint administrator, said: “Although we have been appointed administrators over the Topco to the group, the group’s power stations continue to operate as normal, outside any insolvency process, under the control of their directors.
“We will be working with the directors and senior management in the coming months to develop a new business plan for the power stations, before finalising the timeline to commence a sales process.”