Liquidators of Zen Energy have recommended the immediate winding up of the renewable power retailer, signaling that creditors owed more than $200 million are likely to recover only a fraction of their claims.
The Australian Financial Review reports that most unsecured creditors will receive nothing, while secured parties may recover as little as 10 cents on the dollar.
Zen Energy collapsed owing more than $400 million, a figure that has drawn scrutiny to the private credit funds that financed its operations.
The recommendation marks the final stage in the unraveling of the company, which was backed by former Rudd government climate advisor Ross Garnaut and investor Simon Holmes a Court.
Zen Energy collapsed owing more than $400 million, a figure that has drawn scrutiny to the private credit funds that financed its operations.
Handelsavisen previously reported that these lenders began writing down their positions at least six months before the collapse, suggesting that the risk was priced in well before the formal liquidation process began.
The case highlights the fragility of private credit structures in the renewable energy sector, where high capital requirements and volatile cash flows can quickly erode lender protections.