BusinessBusiness RecoveryKPMG and E&Y appointed to revive TXU

KPMG and E&Y appointed to revive TXU

KPMG and Ernst & Young have been appointed administrators for the UK subsidiary of TXU after the US power company failed to pay its debts due to the slump in the energy sector.

Link: Government bail out buys time at British Energy

Phil Wallace and Jim Tucker of KPMG and Roy Bailey and Alan Bloom of Ernst& Young were appointed administrators to TXU Europe by the High Court yesterday following a petition from the company directors. TXU currently owes creditors more than £2.9bn.

The administration came after AES, the owner of Britain’s biggest power station at Drax in Yorkshire, terminated its long-term contract to supply 60% of its output to TXU. The contract collapsed when TXU failed to pay £50m for October’s supply

TXU is the latest victim of the weakened energy industry, which has been suffering since its privatisation in March 2001. Overcapacity and too much fierce competition are the main ailments of the beleaguered sector, causing electricity prices to plunge more than 40%.

Related Articles

Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

1w Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

1w Emma Smith, Managing Editor
KPMG appoints new global head of insolvency

Business Recovery KPMG appoints new global head of insolvency

4w Emma Smith, Managing Editor
EY hired by Carillion to review finances

Accounting Firms EY hired by Carillion to review finances

5m Alia Shoaib, Reporter
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

6m Emma Smith, Managing Editor
UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

Business Recovery UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

8m Alia Shoaib, Reporter
Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

Business Recovery Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

9m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

10m Emma Smith, Managing Editor