Creditors are owed some £62 million following the failure of Nottingham’s Robin Hood Energy.
Robin Hood Energy was founded by Nottingham City Council as a way of tackling fuel poverty and offering an alternative to the ‘big six’ energy companies. However, the company collapsed and the customer list has since been purchased by Centrica, the parent company of British Gas for £800,000.
At its peak, Robin Hood Energy had more than 125,000 customers and 109 employees, with 61 being made redundant on 15 January, a further 45 on 31 January and the remaining three on 28 February.
Wages of £865,000 have been paid in respect to work completed up to their redundancy. None of the creditors are secured, with the exception of HMRC which has secondary preferential status and so should be paid in full.
It is estimated HMRC’s claim is worth around £670,000 and an initial claim of £1,700 has already been received. A pre-appointment VAT return is being filed, which is expected to decrease HMRC’s claim by around £500,000, and it is anticipated there are sufficient funds to pay the final claim in full.
There are a further 417 unsecured creditors with an estimated claim total of £62 million. To date, some 36 creditors have filed claims totalling £13.4 million. It is expected the unsecured creditors will be paid in the region of roughly 20p to a pound and the distribution will commence when Robin Hood Energy enters creditors’ voluntary liquidation.
Nottingham City Council was criticised last year when it was shown to have spent £43 million of public money in an attempt to prop up the failing company and it provided a further £16.5 million in guarantees.