Neoelectra files for insolvency of Spanish bioenergy plants - report

Sep 8, 2014 - Spanish energy firm Neoelectra, specialising mainly in co-generation, filed for insolvency of its biogas, biomass and other power plants mainly as a result of the ongoing energy reform in the country.

News agency Efe said that sources from the company have confirmed the insolvency procedures, which started on September 3, 2014 in Barcelona. The biomass and biogas units are part of a wider insolvency proceess which involves 12 Neoelectra entities out of its total 18 units. The same sources noted that the parent company has not been affected and would continue its activity.

The total liabilities of the failed companies stood at EUR 180 million (USD 233m).

Neoelectra Group employs 164 people and the runs biogas and biomass facilities as well as eight co-generation plants, three waste-to-energy units and other power generation assets. The group is controlled by US investment fund Arclight Capital.

Last year Neoelectra expressed plans to list on London's Alternative Investment Market (AIM) to fund EUR-250-million investment plans until 2015.

(EUR 1.0 = USD 1.294)

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