Subcontractor on delayed Glasgow renewable energy centre in administration
Waste gasification specialist Energos, which is involved in an ongoing contract to deliver a recycling and renewable energy centre in Glasgow, has fallen into administration following contractual disputes with its two main contractors.
The firm, which also had ongoing contracts in Derby, Milton Keynes and the Isle of Wight, specialised in the supply of energy from waste plants.
Interserve announced in May that it made £70 million of provisions at its UK construction division as a result of a delayed waste to energy contract in Glasgow for client Viridor.
The £146m Glasgow Recycling and Renewable Energy Centre (GRREC) at Polmadie was to feature technology by Energos.
Interserve also awarded Energos a £65m contract in Derby to supply its thermal conversion waste to energy technology.
The main contractor on the Milton Keynes and Isle of Wight plants is AmeyCespa.
None of these are completed constructions or have reached the commissioning stage.
Energos operated from a head office in Warrington and employed 42 employees.
Matthew Wild and Lindsey Cooper of RSM Restructuring Advisory were appointed joint administrators of Energos Ltd on 11 July 2016.
RSM said the decision to appoint administrators was made by the directors of Energos due to cash flow issues caused by contractual disputes with their two main contractors.
Lindsey Cooper said: “Its early days, but we are working with our professional advisors to review the status of the current contracts with a view to maximising the returns to creditors.”