Despite the reassurances of uninterrupted operations for its solar operations in the U.S. and UK, Thursday’s announcement by Australian renewable energy developer CBD Energy that it will enter voluntary administration is sure to spook investors.
CBD, which operates the Westinghouse Solar brand in the Australian, U.S. and UK markets, announced the move with a statement carried by the MarketWired newswire, stating the company’s intent to reorganise under the auspices of Grant Thronton administrators Said Jahani and Trevor Pogroske.
The final line of the announcement is hardly one to fill creditors, or potential customers, with confidence, with CBD stating: "If a reorganization plan is feasible, it is expected to be presented to creditors during December."
The company has already been set a December 5 deadline by the Nasdaq stock exchange to fulfil its prompt reporting requirements, a task complicated as CBD admitted in yesterday’s announcement by the resignation of PriceWaterhouseCoopers as its auditor.
The MarketWired report stated parent company CBD Energy which operates wind and solar farms will enter voluntary administration along with the Australian Westinghouse Solar business which, the company says, has sufficient secured funding to continue operations and fulfill a sizable order backlog.
CBD added its Westinghouse operations in the U.S. and UK, as well as U.S.-based developer subsidiary Green Earth Developers and its Australian heating, ventilation and air conditioning business Parmac will continue to operate outside of the administration proceedings "without interruption."