Energis has been taken over by its bankers after creditors who were owed £700 million set up their own company called Chelys in order to acquire Energis’ assets after it went into administration. The new organization will continue to trade under the Energis name and will be given a long-term debt facility, as well as £150 million in cash.
The refinancing deal was completed when an agreement was reached with Energis’ bondholders. The bondholders will be able to convert their bonds into equity in the new organization. Energis shareholders will also get the right to 7.5% of any value over £1.8 billion if Energis is sold or floated at any time in the next seven years.
Archie Norman, the Conservative MP and former boss of the UK based Asda supermarket chain will now take control of Energis. Norman is seen as the ideal man to attempt to turn round the fortunes of Energis and is seen as an expert on restructuring failing companies.
Energis’ refinancing agreement will guarantee the survival of the company’s UK operations. However, the company says that it still plans to sell its Dutch operations. The future of Energis’ joint venture in Poland remains uncertain.