The developer behind plans to build the world’s largest tidal stream project off the coast of Caithness has asked for more time to repay nearly £5million in debentures.
SIMEC Atlantis Energy (SAE), which is developing the MeyGen tidal network in the Pentland Firth, has entered into discussions with Abundance Investment Limited regarding the extension of the repayment term of £4.95 million of debentures issued in 2017 and currently due in June. 30 this year.
SAE has written to debentureholders to tell them that while it has made steady progress in developing our sustainable energy projects and expects them to generate a significant revenue stream, it has become clear that due to delays in these projects, SAE will require additional time to repay the debentures.
The message concludes: “We intend to repay the debentures in full and continue to pay interest until repayment, but we are requesting this extension to allow us time to realize the value of our projects.”
A further update will be provided by SAE as discussions progress.
The request coincides with the appointment of a new group chief executive and chief financial officer, Simon Hirst.
Mr. Hirst has been with SAE since 2015 and was primarily responsible for all financial and commercial aspects of the MeyGen project.
Prior to joining SAE, Mr. Hirst gained top-notch international corporate experience in a number of organizations including ExxonMobil, Pepsi Cola, Iron Mountain and international power generation company InterGen.
Former chief financial officer Andrew Charters has stepped down and resigned his position on the board, but will remain with the group during the transition period.
SAE President Duncan Black said, “We are delighted to welcome Simon to the Board. Simon brings a wealth of experience and knowledge of the group and our projects as well as a wealth of highly relevant external experience. This appointment follows his success in helping MeyGen secure the recently announced additional funding from Scottish Enterprise and recognizes the huge contribution he has made to the group to date.
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