by EWAN LAMB
The group of companies which own the Avonmouth Bio Power gasification plant near Bristol - a facility which wowed a delegation of Scottish Borders councillors during a visit - have run up multi-million pound liabilities as a result of the malfunctioning plant's closure since June 2016.
Annual accounts for the various businesses which, in some cases, were published three months late on the Companies House website, show the spiralling level of debt since the group took over the 'cutting edge' facility from bankrupt New Earth Solutions.
Although Scottish Borders Council at one time hoped to adapt the technology at Avonmouth for a custom-built waste treatment centre to deal with the region's rubbish the plant has been dogged with various technical issues since its opening.
When Avonmouth Bio Power Energy Ltd and its parent Avonmouth Bio Power Ltd. decided to suspend operations in 2016 it was originally hoped to have the centre producing power from waste again by 2018. But it was subsequently confirmed the plant would not reopen until 2020 although there is no mention of a date for the restart in the latest set of accounts.
Avonmouth Bio Power Energy (formerly called New Earth Energy [West] Operations) now owes creditors £14.634 million (2018 figure £14.412 million). The firm's net current liabilities total £13.494 million (£12.637 million).
A report signed by director Ian Brooking says: "The financial statements have been prepared on a going concern basis notwithstanding the company's net current liabilities of £13.494 million which the directors beliueve to be appropriate for the following reasons:
"The company is dependent for its working capital on funds provided by the parent company Avonmouth Bio Power Ltd.. The parent company has provided the company with an undertaking for at least twelve months that it will continue to make available such funds as are needed by the company.
"This should enable the company to continue in operational existence for the foreseeable future by meeting its liabilities as they fall due for payment. The directors acknowledge that there can be no certainty that this support will continue although they have no readon to believe that it will not do so".
Meanwhile sister company Avonmouth Bio Power Property Ltd (formerly New Earth Energy [West] Ltd) owes creditors £8.222 million, the same figure as last year. Net current liabilities stand at £7.049 million (£7.010 million).
Financial statements for the parent Avonmouth Bio Power Ltd which were lodged on time show creditors are owed £33.668 million (£15.524 million) with net current liabilities of £13.142 million (£5.003 million).
According to these accounts: "The company is dependent for its working capital on funds provided to it by its shareholders, Aurium Avonmouth LLP. The shareholders intend making funds available as are needed by the company, and in particular will not seek repayment of the amounts currently made available.
"This should enable the company to meet its obligations in relation to works required for redevelopment activities".
The 'officers' of Aurium Avonmouth LLP are listed as Aurium Capital Markets Ltd, Aurium Developments Ltd and Cogen Ltd. The principal activity of Aurium Avonmouth Ltd. is as a holding entity for an 85 per cent equity investment in Avonmouth Bio Power Ltd.
Aurium Capital Markets' officers include two companies - Barrowby Investments Ltd and Maybridge Ltd - both registered in the Cayman Islands.
The proposed development of a £23 million waste treatment plant for the Scottish Borders by New Earth Solutions was abandoned in February 2015, only four months after the visit to the Avonmouth facility by elected members and top brass from the Newtown St Boswells-based local authority. The failed venture cost Borders taxpayers £2.4 million.
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