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%.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children