Why did it enter administration?
In Sun Cable’s case, it did receive funding proposals, but “consensus on the future direction and funding structure of the company could not be achieved”, according to a press release.
“The voluntary administration process will now unlock a path forward for the company to access additional capital for continued development of its (marquee) project,” the statement said.
“The administrators intend to work with the company’s management team and key stakeholders to determine appropriate next steps for the business.
“This will likely involve a process to seek expressions of interest for either a recapitalisation or sale of business.”
Who are its investors?
Major investors include private investment company Grok Ventures and Australia’s Squadron Energy, but Sun Cable has also raised money from other private investors.
In March 2022, Sun Cable said it raised A$210 million. However, not all the funds were made available to the company because it had not met some milestones, Reuters reported.
Billionaire and climate activist Mike Cannon-Brookes, who was principal investor at Grok Ventures, took over as chairman of Sun Cable last year. Grok Ventures has invested in a range of businesses including technology and clean energy firms, as well as graphic design platform Canva.
Squadron Energy is owned by Tattarang, a holding company for the family of Australian billionaire Andrew Forrest. Mr Forrest is chairman of iron ore giant Fortescue Metals.
What does this mean for Sun Cable’s flagship project?
Squadron Energy may put together a funding deal for the administrators, Reuters reported, citing a person familiar with the company’s thinking.
Squadron Energy chairman John Hartman told Reuters it believes in Sun Cable’s vision, but that “the manner in which the project is delivered needs urgent change”.
“Exceptional governance practices and world-class project delivery expertise, as well as pursuing bankable technologies, will be required to make the project a reality,” he said.
Australia’s Energy Minister Chris Bowen told reporters: “I remain very upbeat and excited about Sun Cable’s future.”
He said he spoke to “very senior people” in the company.
What is Singapore’s involvement?
Second Minister for Trade and Industry Tan See Leng in January 2021 said there were ongoing discussions on Sun Cable’s proposal to supply solar power to Singapore. Dr Tan said the Energy Market Authority could not share more details due to “commercial sensitivities”.
Sun Cable asked Surbana Jurong member company SMEC to provide engineering consulting services for solar generation systems and grid connection interfaces in Australia, CNA reported in October 2021.
Surbana Jurong said it was facilitating the “early works” of the project, including “mapping out the regulatory approvals required to tie Sun Cable’s solution into the Singapore grid as well as providing technical services for receiving infrastructure such as voltage source converters, substations and subsea cables for landing the power in Singapore”.
What will happen to Singapore staff?
Sun Cable’s subsidiary in Singapore is not in administration. Staff will remain employed. However, since the parent entity in Australia is in administration, Singapore employees may be affected in future.
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