Pentland Firth tidal power project developer SIMEC Atlantis requests more time for £5m payout
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The developer behind plans to build the world's biggest tidal stream project off the Caithness coast has requested more time to pay off almost £5 million in debentures.
SIMEC Atlantis Energy (SAE), which is developing the MeyGen tidal array in the Pentland Firth, has entered into discussions with Abundance Investment Limited regarding extending the timing of the repayment of £4.95 million of debentures issued in 2017 and currently due for repayment on June 30 this year.
SAE has written to debentures holders to tell them that while it has been making steady progress on the development of our sustainable energy projects, and expects them to deliver a significant income stream, it has become clear that as a result of delays to these projects, SAE will need more time to repay the debentures.
The message concludes: "We intend to repay the debentures in full and to continue to pay interest until repayment, but we are requesting this extension in order to give us time to realise value from our projects.”
A further update will be provided by SAE as discussions progress.
The request coincides with the appointment of a new executive director and group chief financial officer, Simon Hirst.
Mr Hirst has worked at SAE since 2015 and has primarily been responsible for all financial and commercial aspects of the MeyGen project.
Before joining SAE, Mr Hirst gained international blue-chip corporate experience at a number of organisations including ExxonMobil, Pepsi Cola, Iron Mountain and international power generation company InterGen.
Previous chief financial officer Andrew Charters has stepped down from the post and resigned his position on the board, but will remain with the group during the transition period.
SAE chairman, Duncan Black commented: “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 very relevant external experience. This appointment follows his success in helping MeyGen to secure the recently announced additional funding from Scottish Enterprise and recognises the huge contribution he has made to the group to date.”
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