An Ayrshire-based renewable energy which specialised in providing wind,
solar and bio-mass power systems for the agri-business sector has collapsed.
Set up 10 years ago by local farmers Andrew Woodburn and Thomas Paterson,
VG Energy at one point employed more than 80 people and had sold more than
300 wind turbines ranging from 6kW to 2-MW in size.
A total of 34 people have been made redundant, while a further five are
being retained to assist the liquidators.
Provisional liquidator MLM Solutions was appointed after VG Energy suffered
severe cash flow difficulties.
Keith Anderson, Director at MLM Solutions, explained: “Over the last six
months a number of external factors have led to a significant drop in
orders from commercial customers. After a sustained period of trading
losses the company has encountered severe cash flow difficulties.
“The company has been impacted by uncertainties with the Renewable Heat
Incentive scheme which has made the scheme less attractive for some
commercial customers causing orders to be cancelled or delayed.
“Furthermore the fall in the pound, as a result of Brexit, has increased
costs which the company has not been able to pass on to customers.
“We are working with the employees and liaising with other agencies to
protect the interests of the employees at this very difficult time.
“Our focus will then be on disposing the company’s assets in order to
maximise the recoveries for the creditors. All suppliers will be contacted
in due course.”
Meanwhile, the administrators of Scottish wave energy pioneer Aquamarine
Power have been given until April 2018 to finally tie up its affairs.
The company had built and tested Oyster wave converters before collapsing
in 2015
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