incl March 24, 2021at the request of the directors, orders were issued to liquidate the Baghlan group of companies, which includes:

  • Calon Energy (Baglan Bay) Limited;
  • Baglan Generating Limited;
  • Baglan Pipeline Limited; and
  • Baglan Operations Limited.

The court appointed the official administrator, Garrett Jonathan Allen, as liquidator. Upon application by the official receiver, the court appointed David John Pike and Michael Robert Pink of Interpath Advisory as special administrators to assist in the liquidation.

Background

The Baglan Group of Companies consists of a gas turbine power station located in Baglan Bay, South Wales. In June 2020, the ultimate parent company entered administration and in July 2020 the power station ceased generating electricity. Electricity is supplied to customers, including the Baghlan Power Park, via an on-site substation known as a private wireline.

Baglan Energy Park, a 180-acre site, is still home to a large number of other businesses and organizations, and the official receiver is keen to ensure that all key stakeholders are kept up to date.

Liquidation

The statutory duties of a liquidator are set out in insolvency legislation and their main role is to ensure the realization of the assets of companies and their distribution among creditors. The legislation also states that the liquidator has the right to conduct the activities of the company only in cases where it is necessary for the beneficial liquidation of the company. To facilitate an orderly decommissioning of the site, the official commissioner has been providing electricity to the Power Park from the private wireline network since its appointment in March 2021. This included the maintenance and operation of the high voltage power grid. lines with all associated risks to health and life for which the official receiver is personally liable.

The Official Administrator and Special Managers worked tirelessly with key stakeholders to inform them of real-time developments and explained the limitations of the Official Administrator’s statutory powers as liquidator to continue electricity supply, emphasizing the need for customers and stakeholders to develop contingency plans situations.

It was and continues to be a complex and challenging liquidation. As part of the closure plan, the Official Commissioner also carried out other important activities at the site, including the removal of hazardous substances and depressurization of the 11.8 km long high-pressure gas pipeline.

Latest developments

Following submissions to the court challenging the Official Commissioner’s decision to stop the supply of electricity, the court heard the submissions and delivered its judgment dismissing the submissions and allowing the applicants to appeal. The date of the appeal has not yet been determined. The court also ordered that power supply to customers must continue until the appeal process is completed or until customers request that the power be turned off.

The official receiver is pleased to announce that Baglan customers have now received alternative power supply through connection to the new Western Power Distribution network or through temporary generators.

From July 8, 2022, after receiving customer disconnection applications, the Baglan group of companies will no longer supply electricity to consumers. The official is now liaising with contractors to carry out the de-energisation works and complete the remaining closure activities, after which the site will be restricted.

The Official Trustee thanks the staff of the Baglan Group of Companies for their commitment throughout the liquidation process and the safe execution of operations and closure activities at the Baglan site.

If you are a customer or creditor of the Baglan group of companies, please contact the dedicated managers by email: baglancustomers@interpathadvisory.com.

https://www.gov.uk/government/news/baglan-group-of-companies-official-receiver-progresses-power-supply-termination

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