THURROCK Council should be able to cut its debt mountain substantially following the agreed sale today of Toucan Energy Holdings, the company made a catastrophic investment of up to a billion pounds.

Toucan, which has been in administration after being unable to pay its debts which include hundreds of million due to Thurrock, was by bought by Schroders Greencoat at a sale price of around £700 million.

However, Thurrock Council, which has debts of more than £1.4 billion, will not see anywhere near all of that cash.

As the primary creditor, after others get their share, Thurrock has issued a statement saying 'after meeting company liabilities the sale will reduce Thurrock's debt position by in excess of £500 million. The council has previous said it had committed around £50 million in fees to financial advisors. It is not clear if that amount is included in 'company liabilities'.

If not, the much-vaunted sale of Toucan, which supporters of the Conservative-ruin administration have touted as bringing in in the full £700 million, falls far short of expectations. And it does not take into account the higher rates of interest Thurrock has had to pay on new loans it had to incur to pay back councils, pension funds and other bodies who had initially lent it money. The council had to borrow £836 million at inflated rates.

Ironically, part of the investment made by energy investment company Schroders Greencoat and announced today, includes substantive amounts from six local government pension schemes: Avon, Cornwall, Devon, Gloucestershire, Oxfordshire and Wiltshire.

Full details of the deal (first reported on Thurrock Nub News last week) can be found via this link.

Cllr Andrew Jefferies (left) and Graham Snell. Leading lights talk up solar sale but acknowledge serious debt issues remain.

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Thurrock Council finance portfolio holder Cllr Graham Snell said: "This marks an extremely important step in our financial recovery. The sale of these assets, and the income we will receive as a result, will allow us to pay down a significant proportion of our debt.

"I would like to thank administrators, Interpath Advisory, for everything they have done throughout the administration process. I'd also like to recognise the important role of our financial advisors on this issue. The diligent and expert work of our financial advisor, Camdor Global Advisors, and our legal advisor, Herbert Smith Freehills, has been critical to this outcome.

"There is much more for Thurrock Council to do as we seek to build on this to ensure we return the council to a financially sustainable position as soon as possible and continue to reduce the council's overall debt along the way. We are committed to taking this work forward and doing all we can to right the wrongs that have taken place in the past."

Council leader Cllr Andrew Jefferies, added: "A great deal of work has taken place behind the scenes to ensure that we could maximise our return on our investment in Toucan Energy. The process has been complex and time consuming but it was important to do all we could to achieve the best possible outcome under difficult circumstances."

"While it is good news that this asset has now been sold, there is no denying the scale of the challenge we face and the ongoing efforts that are required to stabilise the council in the years ahead. We are also still committed to doing everything possible to maximise our recovery."

Entrepreneur Liam Kavanagh and disgraced council finance chief Sean Clark.

Toucan Energy Holdings entered administration in November 2022, with Thurrock Council as the primary creditor. The deal with the entrepreneur Liam Kavanagh, the principal owner of Toucan, is recognised as the key failed deal in bringing the council to its knees, though other failed investments and lost money total hundreds of millions of pounds. The actions and relationship of former council finance chief Sean Clark is being investigated by the Financial Reporting Council.

Cllr John Kent has slammed the Conservatives over Thurrock Council's debt mountain.

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Leader of Thurrock Council's opposition Labour group, Cllr John Kent, says: "Tthe council has lost hundreds of millions of pounds as a result of the Conservative chronic mismanagement of its finances and a reckless gamble with our money,

"The fact remains that the council is still hundreds of millions in debt and council taxpayers will still be paying more and more for fewer and fewer services and vital community assets are set to be sold off at knockdown prices."

News of the 'cashback' came on the day the council sold assets, raising around £1. million.