IG Power (Callide) - Case Update

The Court has rendered yet another decision in the IG Power saga.

Special purpose administrators were appointed in January 2024 at the request of shareholder and creditor Sev.en Gamma a.s. to investigate two catastrophic incidents that occurred at the power station in 2021 and 2022.

In April, Sev.en brought an application seeking the removal of the general purpose administrators, which was initially listed for two days in June. The general purpose administrators then brought a Daistytek application to allow them to call the second creditors’ meeting before the Court determined Sev.en’s application to remove them, likely rendering it redundant. A slew of materials were filed and procedural steps taken, and a short adjournment was proposed.

The general purpose administrators then contended that, if the hearing of their Daisytek application was to be delayed, that delay should be conditioned on Sev.en providing a damages undertaking. The Court refused, stating that the difficulties with the administrations of the companies arise as a result of the general purpose administrators’ “initial failure to perform their statutory duties over a period of some ten months”. The Court also noted that, though it is difficult to speculate, it is possible the administrations could have already been completed.

Read the decision here.