IG Power (Callide) - Case Update

The Federal Court has approved a proposed recapitalisation for IG Power (Callide) (IGPC), IG Power Marketing and IG Power Holdings proposed by Sev.en Global Investments a.s. (Sev.en), which is now the sole shareholder of IG Power Holdings.

In late 2024 and early 2025, we wrote about a dispute arising from a joint venture agreement (JVA) with Callide Energy Pty Ltd (CEPL), a company ultimately controlled by the State of Queensland, concerning the Callide C Power Station in Queensland. Administrators John Park and Ben Campbell of FTI Consulting sought to sell IGPC’s parent company, IG Energy Holdings (Australia) Pty Ltd (IGEH), to Sev.en, but CEPL argued this triggered its pre-emptive rights on a transfer of interest or change of control under the JVA. The Court ruled in favour of the administrators, paving the way for the completion of the sale to Sev.en.

In their last couple of updates to creditors, the administrators reveal that in late March they received a proposal from Sev.en for the recapitalisation of IGPC, IG Power Marketing and IG Power Holdings. The recapitalisation involves, amongst other things, new debt financing to be used for the payment of creditor claims, followed by the exit from administration by those three companies, which will then be considered solvent. New directors will also be appointed. The recapitalisation also includes a structured process to resolve a disputed creditor claim from Genuity Pty Ltd.

The Court granted approval for the companies to enter into the recapitalisation documents, extended the convening period to 22 May, and ordered that the companies will be deemed to immediately exit from administration on the completion of the steps proposed in the recapitalisation, including evidence of creditor payments.

Read the latest update to creditors HERE.