Australia's leading solar energy company, Solar Systems Pty Ltd and two of its subsidiaries have been placed under administration beginning Tuesday.
Pricewaterhouse Coopers' partners Stephen Longley and Davice McEvoy were appointed voluntary administrators of Solar Systems Pty Ltd and its two subsidiaries just two weeks after the Victorian power utility TruEnergy wrote down its entire $53 million investment in the company.
Solar Systems had been promised $129 million in funding from federal and state governments to build Australia's first large-scale solar power station near Mildura in Victoria. The cost of the project was estimated at $420 million.
The company had also plans for 1000 MW large-scale solar installations featuring its unique solar dish technology, at an estimated cost in excess of $3 billion. The company nursed ambitions of emerging as one of the top five global solar energy companies over the next five years.
However, though it had mandated Morgan Stanley to seek new funds and bring in new strategic or financial partners, the company was not able to attract new finance.
The decision to approach administrators came with the withdrawal of two international parties from talks about an equity injection of around $50 million to $100 million.