Skykon suspending payments

[glenn]

Jeest waatch ye dinna fall offa that fence john !

[John S]

Glenn, last time I fell of a fence it was cos Tosh fae the Com chucked me over it, into the sports field on my way back to The Grammar one lunchtime for a laugh. Ripped ma troosers ascant and had to spend the rest of the day in shorts

[glenn]

Haha! Guid reply! Yer doin a guid job, John ; a ken fine well. Give my regards to the Muasdale Mafia !

[bakbjerg]

This is not the case. Skycon committed significant private capital to the development, It seems to be that one of their private investors has taken cold feet with their parent company and its activities in Denmark - not the development here, comments like this are actually very dangerous to future investment, as the confidence of investors can by affected by the background "chatter" no matter how informed or ill informed it is.

What we have is a top grade manufacturing facility with significant orders operating in country which is upping the commitment to renewable energy production, all this in a landscape and seascape which is the best in Europe for wind, wave and tidal development.

In spite of recent issues we should be nothing but optimistic and supportive of the development of renewable energy production (except in Machrihanish bay of course)

Agree. Skykon has stopped payments because a small group of private investors, after investing several hundred millions, has refused to pump in even more capital in to a black hole. They want more certainty for their investment before pumping in even more. A lot of jobs are at stake in Denmark as well.

I think the underlying problem is that Skykon has expanded to quickly

[jamiemcivor]

As John says, the problem is not with Skykon at Machrihanish... it is with the Danish parent. The fear, of course, is that Machrihanish could become the innocent victim if the business were to collapse. But the problems at Skykon are not a reflection on the potential to exploit renewables in the Highlands and Islands - they're about how an individual company is financed.

[Tartan Seer]

Providing Skykon can sort out their immediate financial problems the good news is the announcement by the Scottish Government of a renewables fund totalling £70 million.
The National Renewables Infrastructure Fund - to strengthen port and manufacturing facilities and supply chain provision for manufacturing offshore wind turbines and related components - will leverage significant private sector investment in the next four years and help deliver an estimated 28,000 jobs and £7.1 billion in value to Scotland's economy over the coming decade.
The First Minister reiterated his call for the return of Scotland's Fossil Fuel Levy monies, standing currently at £191 million, which the Tory/Liberal government initially promised to return as part of the much vaunted 'respect agenda'
http://www.youtube.com/watch?v=23OgveeUTdI

[daisy]

Potentially more bad news. The building company doing the extension at Skycon is Rok - and they have just been put into administration.

[bill]

I was reading on forargyll.com that Rok owes McFadyen's £635,000 .Obviously in cases of a big company going in to administration the ripple effect can be far reaching.Bad news indeed.

[bigchang]

http://www.metal-supply.com/article/vie ... for_skykon

[bakbjerg]

News on a Danish web-site today: http://www.energy-supply.dk/article/view/57906/skykon_indgiver_konkursbegaering
I have translated a few selected paragraphs below with no responsibility:

The Company was hit hard by the decline in the windfarm industry and an offensive strategy with establishing new production sites in several countries. This has drained the company’s capital. The file for bankruptcy is expected to cost a Danish bank 250 mill. kroner, (aprox. GBP 30 mill).

Jesper Øhlenschlæger is quoted for saying that the decision to file for bankruptcy wasn’t unanimous. He suggests that there could be more than one reason behind the decision:

“As former CEO and shareholder, I ask myself, if anyone has a special interest in the company going bankrupt, and then afterwards go and pick up the grabs ? ….. The company can pay its bills as they come, and therefore it should be possible to look for a new and better owner”

[D.H]

http://www.bbc.co.uk/news/uk-scotland-glasgow-west-12120460

Skykon's Campbeltown turbine factory in administration

A company in Argyll which manufactures towers for wind farms has been placed in administration.

The parent company of Skykon, which has a plant in Machrihanish, Campbeltown, said it was suspending payments to its creditors because it was cash-strapped.

About 130 people work at the plant, which is one of Kintyre's biggest private sector employers.

Highlands and Islands Enterprise (HIE) and the Scottish government said they would work to try to save the jobs.

A government spokesman said: "Scottish Development International and HIE are working with the administrators and their various stakeholders to achieve a positive outcome, and every effort is being made to secure the viability of the asset and long term, low-carbon jobs for the area."

A threat has been hanging over the facility at the former RAF base since October.

Colin Dempster and Andrew Davison of Ernst and Young have been appointed administrators.

Mr Davison said: "We are currently reviewing the facility's financial position and order book with a view to assessing its immediate trading prospects.

"Some initial expressions of interest have been made and all options will be explored to find a future for the site."
Continue reading the main story
“Start Quote

I have no doubt it [this site] will attract international interest from potential tenants”

End Quote Douglas Cowan Highlands and Islands Enterprise

The past few years have been difficult for workers at the Machrihanish site.

The facility was originally set up and run by a Danish company Vestas, but in 2008 they decided to close it down.

The Scottish government and others worked hard to find a buyer for the facility and it was taken over by another Danish firm, Skykon, in the spring of 2009.

First Minister Alex Salmond visited the site to announce the deal.

Skykon had spoken optimistically of eventually having up to 450 staff on the site.
'Great asset'

Douglas Cowan, Argyll and the Islands area manager for Highlands and Islands Enterprise, said: "HIE and our partners have been working hard to avoid this outcome for Campbeltown.

"We will now do all we can to assist the administrator to identify and negotiate with a new operator.

"Investment in this site over the past 10 years has created a great asset for Argyll and I have no doubt it will attract international interest from potential tenants."

He said Skykon's decision prolonged a period of uncertainty for the workforce.

"Administration is always a challenge, but we believe it will pave the way to capitalise on this asset and secure these important jobs for Argyll in the long-term," he added.

"Over the coming days and weeks, HIE will work closely with the business, the administrator and colleagues in the Scottish government and partner organisations as we seek to achieve a positive outcome."

[Ship called Dignity]

As Skycon are now in Administration does it mean if they find a new owner any debt owed will be paid? Only reason I ask is we were having a discussion about this and no-one seem to know the answer.

[Sheik Yir Erse]

Very simply the role of the Administrator is to try and rescue the company for the creditors. They may look to re-negotiate existing credit lines. For example they could say to existing creditors "will you accept 50% of what you're owed" on the basis that the creditor may only get 10% if the company goes into liquidation.

Again, it might be easier to find a new buyer if the debts/liabilities are negotiated away beforehand. The administrator will try and do a number of things i.e. find a buyer, keep the company afloat, and make it more attractive to a potential buyer.

I "thought" the Administrator was personally liable for any debt incurred after taking charge, but I don't think that's always the case. Perhaps someone else can enlighten us.

ScD - do you not know any Accountants you could ask

On a slightly separate note, I heard on Radio Scotland this morning an MP asking for the Insolvency industry to be closer controlled in terms of their charging, which is self-regulated. I think he pointed to the fact the Administrators of Farepak charged £3m for their services. I believe they get first call on any money recovered, which I'm sure stuck in the throats of those savers trying to recover their hard earned savings.

[maxmix]

Alex Salmond will sort it all out when he comes down mid week....

maxmix

[bakbjerg]

Latest news from the administration/reconstruction here in Denmark:

One small factory, producing af part of blades, has been reconstructed by local forces, hoping Siemens will continue their orders.

Antoher, larger site, employing hundreds, has now involved the police. From the site, (a former shipyard), a number of casting molds, oven and tools has disappeared after the closure. Two Siemens employees has been reported to the police for steeling from the site.