A new group has acquired the business assets of the Australian tidal energy project and technology company MAKO Tidal Turbines following its voluntary entry into administration late in 2020.
“Whilst the MAKO brand has been discontinued, the technology will live on as will the vision: to broaden and improve the energy mix wherever there is free-flowing water”, said Michael Parkinson , communications director for MAKO Tidal Turbines, in a business development update related to the company’s administration and restructuring procedure.
Namely, MAKO Tidal Turbines appointed Adam Preiner as an administrator in September 2020 to handle the process after the Sydney-based company filed for bankruptcy.
The global Covid-19 pandemic severely disrupted the commercialisation of the MAKO tidal energy system, the company said, adding that the restrictions also affected efforts to seek new investors.
Also, the delays caused by the closure of state and international borders prevented engineering and business development personnel from travelling to potential customer sites.
So, as a result of the pandemic the business remained entirely dependent upon funding by existing shareholders, just as disagreements began to emerge about future commercial strategy, according to Parkinson.
The end result was that MAKO Tidal Turbines could not fund its operations and was placed into voluntary administration (the Australian equivalent of USA Chapter 11 bankruptcy).
The parent company, Elemental Energy Technologies, was placed into liquidation by its largest shareholder.
Under Australian law, administration procedure involves a public expression of interest campaign seeking ways for the business to restructure so it can continue in some new form.
Through this impartial process conducted in accordance with the Australian Corporations Act, a new group has acquired the business assets of MAKO Tidal Turbines.
Also, the new group – whose name was not disclosed – has invited the technology team behind the MAKO turbine to be part of their business, ensuring that this pool of expertise is not lost.
In addition, the funds paid by the new owners to acquire the MAKO intellectual property has gone to creditors, Parkinson confirmed.
Speaking for the new shareholder group, Douglas Hunt , Managing Director of MAKO, said: “ The impartial voluntary administration process gives existing investors, as well as new investors, the opportunity to re-assess the business model and strategy see if an appropriately funded and commercially viable business can emerge. This is what happened with the former MAKO tidal energy business.
“Our new backers have the expertise, finance and business connections needed to commercialise the turbine technology. Not only have we preserved the core engineering team, we are confidently planning expansion to including business development specialists in our priority markets”.
The group expects to make announcements about the business over the coming months, according to Parkinson.