UK: Replace: Baglan group of firms – energy provide to the Power Park

On 24 March 2021, upon the petition of the administrators, winding-up orders have been made towards Calon Power (Baglan Bay) Restricted, Baglan Producing Restricted, Baglan Pipeline Restricted, and Baglan Operations Restricted and the court docket appointed the Official Receiver, Gareth Jonathan Allen, as Liquidator.

The court docket appointed David John Pike and Michael Robert Pink from Interpath Advisory as Particular Managers to help the Official Receiver with the liquidation.


The Baglan group of firms comprise a gasoline turbine energy station situated in Baglan Bay, South Wales. In June 2020 the final word guardian firm entered administration and in July 2020 the ability station ceased producing electrical energy. Energy is equipped to the Baglan Power Park by a substation on the positioning – often called the non-public wire community.

Baglan Power Park, a 180-acre website, stays dwelling to numerous different companies and organisations, and the Official Receiver has striven to make sure all key stakeholders have been saved abreast of developments.


A liquidator’s statutory duties are set out in insolvency laws and their major function is to make sure the belongings of the businesses are realised and distributed to collectors. The laws additionally units out {that a} liquidator is simply empowered to hold on the enterprise of an organization the place it’s essential for the useful winding up of the corporate. All through the liquidation the Official Receiver has sought and acted upon the recommendation of his authorized advisors, together with the recommendation of Main Counsel.

So as to facilitate an orderly wind-down of operations on the website, the Official Receiver has maintained the provision of electrical energy and in so doing has continued to provide the Power Park from the non-public wire community since his appointment in March 2021. This contains the upkeep and operation of the excessive voltage electrical energy traces with all of the related dangers to well being and life, for which the Official Receiver is personally liable.

This has meant the tenants on the Baglan Power Park have benefited from an uninterrupted energy provide and have had time to place in place contingency plans for the eventual switching off of the non-public wire community and conclusion of liquidations of the Baglan group. This might solely proceed while energy was required to wind down the businesses and full website closure actions.

These are complicated and difficult points of the liquidations. As a part of the closure plan the Official Receiver has additionally carried out different important actions on the website, together with eradicating hazardous substances and depressurising the 11.8 km excessive strain gasoline pipeline.

Newest developments

The Official Receiver has been funded to undertake his duties by the UK Authorities and has labored tirelessly with key stakeholdersto preserve them knowledgeable of developments in actual time. The Official Receiver has constantly emphasised the non permanent nature of ongoing provide and shared plans to attain the wind down of the Baglan group of Firms. From the outset of the liquidations of the Baglan group of Firms the Official Receiver has defined the restrict of his statutory powers as liquidator to proceed electrical energy provide, and careworn the urgency for purchasers and stakeholders to develop their contingency plans.

Following an in depth threat evaluation, the Official Receiver and the Particular Supervisor’s major focus has been the preparation, finalisation, and execution of a sequenced closure plan, which has been shared with all stakeholders.

As a part of these closure actions, and with recommendation from Main Counsel, the termination of the provision of electrical energy from the non-public wire community was deliberate to finish on 14 January 2022 and communicated to prospects and stakeholders in October 2021.

Following purposes to court docket by quite a lot of prospects and a stakeholder difficult the Official Receiver’s resolution to terminate the provision of electrical energy, the Official Receiver has agreed a consent order that features a time period that energy provide to its prospects situated in Baglan Power Park is not going to be terminated till the purposes are decided by the court docket.

If you’re a buyer or creditor of the Baglan group of firms, please contact the Particular Managers through e mail: [email protected]