Lincolnshire-based solar developer Lark Energy collapsed owing more than £48.6 million, it has been revealed.
However of that figure, more than half – around £26 million – is owed to associated companies such as Larkfleet Group.
And the firm’s appointed insolvency practitioner PFK Cooper Parry has settled a portion of the blame for Lark’s failure with sub-contractors over alleged failures to complete works on deadline.
Last week Solar Power Portal reported that Lark Energy had filed for liquidation after months of speculation surrounding the company’s future, resulting in the loss of around 20 jobs.
And further details have now arisen surrounding the insolvency. Tyrone Courtman, head of business restructuring, recovery and insolvency services at Lark’s appointed insolvency practitioner PFK Cooper Parry, said his firm was left with no other option but to file for liquidation, citing a “severe lack of cash”.
However the firm has also appeared to point the finger at other companies engaged with Lark’s principal activity.
“The company also suffered significant losses on a number of major projects as a result of the engaged sub-contractors failing to complete the necessary works by the agreed deadlines.
“These losses, when combined with the loss of business as a result of the changes within the industry, resulted in the eventual collapse of the company,” Courtman added.
Lark Energy was highly engaged in the development of ground-mount solar farms supported by the government’s Renewables Obligation subsidy scheme. The scheme degressed once a year on 31 March, after which the accreditation window for that particular ROC-level would close to new applicants.
If a solar farm missed its 31 March connection date, it would fail to qualify for that ROC level and instead have to connect at a lower subsidy, potentially endangering the economics of a specific project.
Courtman further added that while it was unlikely that Lark’s remaining assets will be enough to repay monies owed to creditors in full, PFK Cooper Parry remained hopeful of a “partial return”.
Meanwhile documents filed with Companies House show that a liquidation committee of creditors was established last week. The four named members of that committee include Larkfleet, connections provider G2 Energy, construction firm Modus Utilities and recruiters Barker Ross.