Edinburgh Wave Energy Firm Calls In Administrators
A wave energy firm has called in administrators while it looks for a new investor.
Edinburgh-based Aquamarine Power said administrators BDO LLP will take over the running of the company as they seek a sale or investment through the process.
BDO said the firm, which has been working on a key wave energy project in Orkney, had been significantly affected'' by the economic climate and a lack of private-sector backing to supplement public funding.
Joint administrators James Stephen and Graham Newton will continue to trade the company with a view to achieving a sale as a going concern, BDO said. The firm's 14 employees are all being kept on.
The move to appoint administrators followed a decision by the Aquamarine Power board on Tuesday.
The wave energy developers have been testing their full-scale Oyster wave energy machines at the European Marine Energy Centre (EMEC) in Orkney.
Mr Stephen, a BDO business restructuring partner, said: Whilst the company has seen many successes over the last few months, including securing an 800,000 euro (£580,000) grant from the EU as well as a £2 million contract from Wave Energy Scotland, the economic climate has significantly affected the business.
The lack of private-sector backing to supplement public funding support placed the company under cashflow strain and the directors concluded the best prospect of concluding a transaction was via the protection of administration.
The company holds liquid funds which will allow this strategy to be pursued. We are continuing discussions with interested parties who were in discussions with the company prior to our appointment and are working closely with the Aquamarine Power board to engage with other potential purchasers. We welcome new enquiries.''