THURROCK Council says it believes it has eased its financial predicament by agreeing that one of the companies it has invested millions in can go into administration. 

Toucan Holdings and controversial businesman Liam Kavanagh are at the epicentre of the financial storm that has engulfed the council and brought it to the brink of bankruptcy. 

Hundreds of millions have been invested and big chunks of that gamble may not be recoverable. 

Today (Friday, 11 November) Cllr Mark Coxshall, the leader of Thurrock Council, said: "Yesterday I decided to agree to support Toucan Energy Holdings 1 (TEH1) entering into administration. 

"This is a positive move forward in enabling Thurrock Council to resolve its financial position and maximise recovery for Thurrock residents. The solar farms held by Toucan continue to generate income and as the primary creditor Thurrock Council will be able to seek to recover the value of investment.

"I will be able to share more detail regarding the impact of this on the Council's finances at the Cabinet meeting on 7 December 2022. As I have said before I am determined to be open and transparent regarding the Council's finances and I am seeking to bring certainty to them as soon as possible. I am confident that the decision to place Toucan into administration is a significant step to reducing our overall debt."

A spokesperson for the Thurrock Commissioners, brought in by the government to supervise administration of the council's finances, said: "We have been working with Thurrock to help them resolve their serious and complex financial challenges and help the Council take the best course of action in relation to these very complex investments, while meeting the directions set out by the Secretary of State. The Commissioners believe Toucan entering administration is a positive step towards reducing Thurrock's overall level of debt.

Today it was announced Toucan sought the appointment of joint administrators after concluding that its liabilities exceeded its assets.

 Jim Tucker, managing director at Interpath Advisory and joint administrator, said: "This is a significant portfolio of high-quality renewable generation assets which, as the UK accelerates its transition towards a green and renewable future, have an important role to play in the nation's energy security strategy.

 "The underlying solar park operations are not in administration and continue to operate as normal. Our immediate priority is to put in place the stable platform at the top of the group which will reassure stakeholders that it is business-as-usual in the underlying operations.

"Given their significant underlying cash generation, we expect considerable interest in the assets. In the coming months we will work closely with our M&A advisors, as well as Thurrock Council as the Company's major creditor, to bring these assets to market in a full, unhurried, sales process.

 "Our proposals to creditors will be published within eight weeks of our appointment, at which time we will provide more details about our strategy for the administration."

Mr Kavanagh, through his legal advisors, has contacted Thurrock Nub news to say: "I cannot comment on the decision to put the company into administration having had no role in that decision or indeed the management of the Toucan business.

"I installed a new management team in June 2022 and, as far as I am aware, the underlying business has traded strongly and all interest has been paid in full and on time in accordance with the terms agreed between Thurrock Council and the company.

"Although I cannot speculate as to the reasons for the company going into administration, if I am approached, I will assist the administrator to achieve the best outcome for the company's stakeholders.

"I am confident that this is a business with a positive future, particularly given the recent and current growth in the green energy market"