POWER generators owed $5 million by the failed energy retailer Jackgreen are unlikely to redeem a cent from the collapsed group, the company's administrators say.
Jackgreen, which was Australia's largest specialist renewable retailer, toppled into voluntary administration the week before Christmas after failing to pay a $500,000 bill to the NSW government-owned Integral Energy.
Apart from Integral, other power companies seeking $5 million in unpaid debts from Jackgreen are Origin Energy, AGL Energy, NSW's government-owned Country Energy and a Queensland supplier, Energex.
An administrator from PKF, Atle Crowe-Maxwell, said these unsecured creditors faced an uphill battle in reclaiming funds from Jackgreen, as they were lower in the queue than secured financiers and employees.
Three quarters of Jackgreen's staff of nearly 100 have been sacked, and Jackgreen shares, which last traded at 3.8c before the collapse, are, in effect, worthless.
''I don't think there's going to be anything left for unsecured creditors at this point in time, let alone shareholders,'' said Mr Crowe-Maxwell, who was appointed by Jackgreen's board.
Jackgreen creditors will hold their first meeting today, before the company's future is decided towards the end of this month. Mr Crowe-Maxwell said liquidation appeared the most likely outcome.
Since Jackgreen's retail licence was revoked on December 18 receivers have also been appointed by the group's major secured creditor, which is owed about $11 million.
A receiver with Jirsch Sutherland Partners, Sule Arnautovic, said Jackgreen's accounts showed it was owed about $25 million in unpaid bills from customers, but without its licence the group has few other assets.
Jackgreen's 75,000 customers were transferred to other suppliers when it lost its licence, and Mr Arnautovic said he was expecting a large number of disputes over its attempts to reclaim the money.
Jackgreen did not generate power, but specialised in selling renewable electricity from cheap methods such as hydro generation, rather than more expensive options such as solar or wind.
Its collapse comes despite growing public interest in green power generation. The company's troubles appear to have been caused by gaps in its cash flow rather than low customer numbers.
Ben Freund, the chief executive of the power price comparison website GoSwitch.com.au, said the cheaper forms of renewable power sold by Jackgreen remained the most popular environmentally friendly option with consumers.
''In theory everybody wants to go green, but in reality most consumers are not prepared to pay for it out of their own pockets.''
(SMH ARTICLE)
What's the current status?
ReplyDeleteSo we still don't get the money we are owed, how fucking sad...
ReplyDeleteWow, it says consumers not willing to pay for it.. $800 I am owed 🤔 STILL waiting
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