Energy firm on the verge of going bust affecting 20,000 customers
A GREEN energy firm is on the brink of collapse in another blow for net zero ambitions.
Ripple Energy, which asked customers for cash in exchange for shares in wind turbines to local co-operatives, secretly filed notice to appoint administrators on Monday, according to documents.
The Sun can reveal it is already working with restructuring experts at Begbies Traynor.
The notice to appoint administrators is a process that usually kicks off ten days before a firm goes bust or finds a rescue buyer.
Industry sources said it was unclear who would make a rescue bid for Ripple Energy due to the complexity around what the business assets are.
Ripple Energy encouraged Brits to buy shares - with some customers investing thousands of pounds although the minimum was £25 - which would give them a stake in a solar park and wind farm.
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Ripple then powered with energy suppliers - including Octopus Energy and British Gas - and said customers could have the power from their wind farm.
It had estimated customers would save up to 25% off their bills.
These customers now stand to lose their investments, but their energy supply will not be affected.
The firm's crowdfunding process boomed during the height of the energy crisis in 2022 when Brits were desperate to find ways to cut their bills.
Last year Ripple Energy secured a £21.8million loan from Virgin Money for a wind farm in Ayrshire, Scotland.
It had also secured a £20million of funding from institutional investors for a solar park in Derril Water.
The firm has just 35 employees and is led by Sarah Merrick, who founded the business in 2017 after working at Vestas, the world's largest wind turbine manufacturer.
Ripple Energy did not respond to requests for comments.
What does it mean for customers?
If the company you've invested in goes bust, the outcome depends on the type of company and the nature of your investment.
If you have invested in Ripple, a limited company, your liability is typically restricted to the amount of your investment.
You won't be personally responsible for the company's debts.
However, you are likely to lose your investment.
In the meantime you should gather information and await to find out what type of insolvency process the company is undergoing.
Contact the administrator handling the case for details about your rights and potential returns.
You may be able to register your claim with them at a later date to be considered in the distribution of assets.
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If you're unsure about your rights or the insolvency process, consult with a financial adviser or solicitor.
It's important to remember that insolvency processes can be lengthy and complex, and there's no guarantee of recovering your investment.
What does going into administration mean?
WHEN a company enters into administration, all control is passed to an appointed administrator.
The administrator has to leverage the company's assets and business to repay creditors any outstanding debts.
Once a company enters administration, a "moratorium" is put in place which means no legal action can be taken against it.
Administrators write to your creditors and Companies House to say they've been appointed.
They try to stop the company from being liquidated (closing down), and if it can't it pays as much of a company's debts from its remaining assets.
The administrator has eight weeks to write a statement explaining what they plan to do to move the business forward.
This must be sent to creditors, employees and Companies House and invite them to approve or amend the plans at a meeting.
A Notice of Intention is used to inform concerning parties that a company intends to enter administration.
It is a physical document which is submitted to court, usually by directors aiming to prevent a company from being liquidated.
Like with a standard administration process, a Notice of Intention stops creditors from taking out any legal action over a company while they try and rectify the business.