Embattled Keppel subsidiary Basslink enters voluntary administration

Three Ernest & Young representatives were chosen as voluntary administrators.

Basslink, the embattled Asitalran subsidiary of Keppel Infrastructure Trust  (KIT), has ented a voluntary administration.

In a bourse filing, KIT’s trustee manager said Adam Nikitins, Stewart McCallum, and Colby O’Brien from Ernst & Young were appointed as voluntary administrators of the Australian-based electricity interconnector.

The move was done following ongoing disputes with its customer Hydro Tasmania and an unsuccessful sale process with APA Group.

KIT reported that Basslink had already reached out separately to the State of Tasmania, Hydro Tasmania, and National Australia Bank Limited in connection with the arbitration award in the amount of approximately $39.02m (AU$39.5m); costs awarded in the amount of approximately $7.1m (AU$7.2m) in view of the expiry of the standstill agreement; and letters demanding payment for $57.9m (AU$58.6m) from Hydro Tasmania.

Basslink, in a separate statement, said its move to enter voluntary administration was made with the long-term interest of the company, its creditors, and employees, in mind.

Nikitins said the voluntary administrators will be “seeking to assess the best options” for Basslink  “with a view to restructuring it for a more sustainable future.”