A listed biodiesel fuel company that billed itself as the world’s first renewable energy company has been placed in administration after collapsing with debts of $4.3 million.
Solverdi Worldwide, which has its operational headquarter in New York but is listed on the Australian Securities Exchange, offered a range of renewable energy products including biodiesel, biomass fuels and renewable diesel for use in what is known as “behind the meter” infrastructure, such as back-up or stand-by power supplies.
The company is now in the hands of Sydney insolvency firm Pinn Deavin. A spokesperson for the insolvency firm refused to comment this morning.
The company’s collapse is likely to come as something of a suprise to shareholders. On February 24, the company confirmed it had accepted an “assets purchase agreement” from New York firm Lincoln Hill Capital Partners.
Chief executive Dennis Danzik said in February the offer “presented is a great value today in what is a difficult market. This will open up opportunity for our shareholders in the near-term and in what is currently a growing a dynamic renewable energy industry”.
The fate of this agreement is not clear, although administrators would be likely to talk to Lincoln Hill about buying company’s assets.
Solverdi’s latest accounts, for the year to December 31, 2001, showed revenue increased 130% to $12 million, with the company’s net loss narrowing from $1.9 million to $1.4 million.
However, commentary accompanying the accounts noted “the last quarter was disappointing due to lower business activity (partly seasonal) and a significant drop in commodity prices”.
Solverdi was formerly known as Australian Biodiesel Group until a name change in April 2009 following a restructure.
In November 2008, the company formed an agreement with US renewable energy group White Mountain, whereby the American company granted Solverdi a license over its renewable energy technology platform and injected $500,000 into the Sydney firm in return for a stake of 10.6% in Solverdi.
The company’s accounts show liabilities of $4.35 million at December 31, although the company was carrying $1.4 million in cash and accounts receivable of $7.4 million.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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