Sun Cable completes asset sale to Grok Ventures affiliate
Proceeds are expected to be used to pay unsecured creditors in full.
Sun Cable has completed the sale of its assets to Grok Venture’s affiliate Helietta Holdings 1 Pty Ltd.
In a statement, Sun Cable’s Voluntary Administrator FTI Consulting said the Asset Sale Agreement between the parties will include the Australia-Asia Power Link Project, which be taken by Grok Ventures and its consortium partner Quinbrook under Helietta’s ownership.
FTI said the proceeds from the transactions will allow Sun Cable to pay in full the unsecured creditors.
In a separate statement, Grok Ventures said Sun Cable “is well-progressed and in a strong position” to deliver the project that aims to transport clean energy from Australia to Asia.
“SunCable's AAPowerLink project has all the component parts to make the next great Australian infrastructure initiative possible. It will create more local jobs and support our green manufacturing and renewable energy industries. It’s set to deliver huge volumes of green energy to Darwin – powering a burgeoning green industry opportunity in the (Northern Territory), said Mike Cannon-Brookes, Principal of Grok.
“There’s huge upside for both Australia and our neighbours, Singapore and Indonesia. We look forward to working with our partners across Asia to drive this,” he added.
Sun Cable reorganised the projects into two streams. SunCable Australia which is composed of the generation of renewable electricity from solar in the Northern Territory, delivery of the electrons to Darwin, and the supply of offshore component and third-party industrial power consumers near Darwin.
SunCable International, meanwhile, is the offshore component focusing on the delivery of electricity via sub-sea cable which will be taken by “highly credit-worthy global corporate offtakes” in Singapore.
FTI said SunCable will still be under Voluntary Administration until the second meeting of its creditors prior to 15 September.