Bulb the next to go?

ihatetrump

https://news.sky.com/story/bulb-on-brink-of-collapse-amid-government-talks-with-creditor-12475565

jimjames

Interesting that the article seems to suggest it has already happened

A Bulb spokesperson said: "We've decided to support Bulb being placed into special administration, which means it will continue to operate with no interruption of service or supply to members.

"If you're a Bulb member, please don't worry as your energy supply is secure and all credit balances are protected."

MWT

Timing gets a bit complicated with this process, but agreeing to support it isn't the same as it having happened... yet...

EssexHebridean

It does look as though they are fairly resigned to the inevitable, doesn't it. 

dbks

ihatetrump said:

https://news.sky.com/story/bulb-on-brink-of-collapse-amid-government-talks-with-creditor-12475565

and from 2 months ago

https://news.sky.com/story/energy-company-bulb-seeks-bailout-as-pm-insists-soaring-gas-prices-are-global-problem-12412618

Lots of similar stories from Sky in between.

It worked for MSE posters constantly saying NR would go bust didn't it?

MWT

dbks said:

ihatetrump said:

https://news.sky.com/story/bulb-on-brink-of-collapse-amid-government-talks-with-creditor-12475565

and from 2 months ago

https://news.sky.com/story/energy-company-bulb-seeks-bailout-as-pm-insists-soaring-gas-prices-are-global-problem-12412618

Lots of similar stories from Sky in between.

It worked for MSE posters constantly saying NR would go bust didn't it?

Accurate predictions based on the facts at hand in both cases.

The only bit that was ever in doubt was the exact date...

ihatetrump

Given that they are the 7th largest supplier, that becomes very worrying - I suspect there may be more to come, smaller ones definitely, but a big 6 supplier would send shock waves...... 

and this quote from the article:

Sequoia is said to have demanded the repayment of its loan prior to Bulb being placed into administration, they added.

Repayment of a loan before administration - puts the directors potentially in an untenable position - favouring one creditor over another  - secured or unsecured?

MWT

ihatetrump said:

Repayment of a loan before administration - puts the directors potentially in an untenable position - favouring one creditor over another  - secured or unsecured?

They may well be the only secured creditor, but the deal will be done with the Government/Ofgem, not with the directors I am sure...

QrizB

ihatetrump said:

and this quote from the article:

Sequoia is said to have demanded the repayment of its loan prior to Bulb being placed into administration, they added.

Repayment of a loan before administration - puts the directors potentially in an untenable position - favouring one creditor over another  - secured or unsecured?

I don't know quite how that would work; if Bulb have no money, exactly how are they meant to pay back a £50M loan? What is it secured on and is the security still worth £50M?

MWT

QrizB said:

ihatetrump said:

and this quote from the article:

Sequoia is said to have demanded the repayment of its loan prior to Bulb being placed into administration, they added.

Repayment of a loan before administration - puts the directors potentially in an untenable position - favouring one creditor over another  - secured or unsecured?

I don't know quite how that would work; if Bulb have no money, exactly how are they meant to pay back a £50M loan? What is it secured on and is the security still worth £50M?

Very few businesses go into administration with no money, you still need funds to pay the administrators, it is an expensive process after all. Only way you'd normal find a business with no cash going down the administration route is if you already have a pre-pack in place.

Look at the details for Avro for example, they had a lot of cash still, just not enough to meet all the expenses they had coming at them in the near future...

I'd also suggest that Sequoia are making this demand in the expectation that the funds will come from the Government to avoid having a contested court process dragging this out...

Sequoia have a lot more to fear from the SAP than they would as a secured creditor in the normal administration process, so they are right to leverage their position given the direction this is heading...

SalMoh

Sad news. The UK's seventh-largest energy supplier has collapsed amid soaring wholesale energy prices.

Telegraph article today.