Quebec may lose $60M invested in Enerkem as bioeconomy pioneer reorganizes
In Canada, La Press reports the Legault government is set to lose the C$84 million Quebec has invested in Enerkem as the Montreal company has just taken shelter from its creditors. It is likely to succeed in the hands of its largest lenders, the Spanish oil company Repsol and two New York-based funds.
The company has been trying for 25 years to commercialize a technology that converts waste into energy. In particular, the government has invested EUR 64.3 million to buy Enerkem’s shares and convertible notes, which will be cancelled if the plan proposed by Comptroller Deloitte moves forward. In this scenario, T=the Fonds de solidarité FTQ et Fondaction (CSN) could lose the C$32.6 million they have invested in shares in the company, under the protection of the Companies’ Creditors Arrangement Act (LACC) since May 12. In addition to the value of their shares, Quebec and the workers’ funds are likely to forget nearly C$2.8 million in loans they had granted to Enerkem in an attempt to bail it out in 2023.
According to court documents, Repsol, along with the Monarch and Eyre Street funds, wants to get their hands on Enerkem for $305 million. The sum includes their secured claims of nearly .028 million and a short-term and interim financing plan totaling C$87 million. They will become the owners of the business if no one makes a bid. The controller has until September to receive further offers. According to court documents, Enerkem faces claims of nearly C$373 million, including unsecured debts, for assets with a value of only C$31.5 million.
Category: Fuels
