The High Court has confirmed the appointment of an examiner to the company building a biomass-fuelled power plant in Co Mayo.
The plant located in Killala will generate electricity from woodchips. It was due to become operational in 2017 but work stopped on the site in July due to a funding shortage. The developer, Mayo Renewable Power Ltd (MRP), is now insolvent and sought the protection of the courts.
Last month the High Court appointed insolvency practitioner Michael McAteer of Grant Thornton as interim examiner to MRP. In Monday the matter returned before Mr Justice Anthony Barr, who confirmed Mr McAteer as examiner to the company.
Protection
There were no objections to his appointment. The move gives the company the protection of the court and will allow the examiner take steps including securing additional investment so the plant can be completed.
Barrister Kelley Smith, for the examiner, told the court that Mr McAteer had already held discussions with a number of interested parties and that the talks have been “positive”.
During the currency of the examinership process Mr McAteer will attempt to put together a scheme of arrangement with creditors, which if approved by the High Court would allow the company to continue to trade as a going concern.
The proposed 42.5 megawatt biomass-fuelled plant, which is designed to generate both electricity and biomass woodchips used as a solid fuel, was 50 per cent complete when work ceased.
James Doherty SC, counsel for the company, said the plant was a significant and long-planned undertaking and had created 350 jobs for the construction phase.
Funding
When operational the plant would create 130 new jobs and has the potential to create a further 1,000 jobs in the Irish biomass market. The plant was initially to be funded partly, for some €80 million, by its parent company, Rockland Mayo LLC, which is registered in Delaware in the US. The remainder was to come from a syndicate of lenders including Ulster Bank, AIB and Barclay's Bank which was to provide €118 million.
However, those funds were not drawn down after a problem emerged with a supplier. The parent increased its funding by an additional €10 million, but new finance from lenders is required.
The company is also facing a damages claim for $60 million brought against it and others in the US courts.
John Sisk & Son, which has given its qualified support for the examinership process, is the main contractor.
