Investment in energy production such as waste to energy often attracts investors looking for Enterprise Investment Scheme tax relief. One way for those investors to maximise their tax claims (if the project goes wrong) is to put the company into liquation or administration as this means they can claim a further tax deduction on the write off.
Often the fixed assets in these businesses are worth a lot less than the cost. The hoped-for profit would have come from a long-term contract to supply energy. In a few of the cases we have dealt with the power generated is lot less than forecast so the business will never make a profit. In one instance the energy plant just never worked as planned.
The issues with these businesses are numerous such as:
It is best for the board of directors to take insolvency advice early on. The sooner we are involved the more options will be left for them to choose from.
Simply fill out the short form below and I will get back to you.
Licensed Insolvency Practitioner