Flowgroup calls in administrators
Energy firm Flowgroup has called in administrators, having been unable to reach a final agreement with its creditors about the settlement of sums owed.
Since the sale back in May of its principal subsidiary, Flow Energy Limited, the company has explored the possibility of a reverse takeover but has been unable to identify any viable opportunities.
As a result, it has been forced to call in administrators, jointly appointing George Rowley and Philip Armstrong of FRP Advisory LLP. Nominated adviser Cenkos Securities has resigned with immediate effect.
"The joint administrators will correspond with the company's creditors and shareholders regarding the administration process in accordance with their duties. The company reiterates that it does not expect any value to be distributed to shareholders in any event."
Trading in Flowgroup shares has been suspended.