Dublin-listed Corre Energy’s Dutch parent group has pledged more than 15 per cent of the Irish company’s shares as collateral for loans.
In filings with the Dutch financial regulator on Monday, the company separately said Northern Irish investor Stream Street, owned by the Boyd family, has acquired a 19.3 per cent stake in the business as settlement for a loan granted to its Dutch parent.
The renewable energy storage developer, listed on the Euronext Dublin Stock Exchange, is controlled by Amsterdam-registered Corre Energy Group Holdings, in which founder shareholders Darren Patrick Green, Keith McGrane and Brendan Boyd hold a majority stake.
On Monday, Corre Energy Group Holdings told the Dutch regulator that pledges have been granted to lenders on more than 11.9 million shares in the Irish company, representing 15.4 per cent of Corre Energy’s total issued share capital, almost a quarter of the Dutch group’s stake in the business.
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The pledges were granted as security for three “security backed loans” taken out by the group, giving the three lenders “certain controls” over the shares, including “in certain circumstances to dispose of some or all” of the stock during the term of the loan agreements, it said.
It is understood the majority of the loan capital was put back into the business.
Separately, Corre Energy Group said Belfast-registered Stream Street – controlled by Brendan Boyd’s father Frank Boyd, a property developer and one of the wealthiest men in Northern Ireland – has been granted some 15 million ordinary shares in the Dublin company. The transfer was consideration for “full and final settlement of a loan entered into by Corre Energy Group”, according to the filings.
Following the transaction, Corre Energy Group will retain a 45.9 per cent stake in the Irish business, it said in a statement.
Corre, which was down to just €1.08 million of cash at the end of last year, recently raised €2.76 million in a share sale to investors to tide it over as it continues talks with third parties interested in making a bigger investment in the business.
Shares in Corre were hit in late February – falling below its €1 initial public offering price for the first time – when founding director and shareholder, Darren Patrick Green, stepped down as an executive director after a Singaporean company ultimately owned by him was named by UK tax authorities in relation to an alleged tax-avoidance scheme.
Mr Green told The Irish Times that he was “absolutely astonished” by the news and had not been a director of – or been involved in the running of – that company for years. He said he remains committed to the 38 per cent stake he owns in Corre.
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