Home
/ Insights
/ Case Studies
/ Repowering IG Power (Callide) Through Recapitalisation

Repowering IG Power (Callide) Through Recapitalisation

Following two catastrophic incidents at the Callide C coal-fired power plant in Queensland, the plant was taken offline for an extended period while it was rebuilt, causing significant liquidity challenges for IG Power (Callide) Ltd and certain related entities (‘the Group’), who own a 50% joint-venture interest in the plant. Dissatisfied with the initial Voluntary Administrators’ progress — specifically, the investigation into the cause of the incidents — FTI Consulting’s John Park and Ben Campbell were appointed as Voluntary Administrators following orders by the Federal Court of Australia.

Our Impact

FTI Consulting enabled the continuation of operations and investigations into the Callide C incidents and maintained the integrity of the dual-track sale and/or recapitalisation process.
Following extensive investigations into the incidents, our experts valued the available claims, ensuring the Group stabilised its liquidity.
After an exhaustive transaction process, AUD195 million in funding was secured from Sev.en Global Investments for a recapitalisation of the Group, allowing the plant to be rebuilt and return to operations.
The successful recapitalisation saw all creditors paid in full, the retention of the joint-venture interest and the incident claims to the benefit of the shareholder. It also secured the future of this important asset that is critical for Queensland’s energy supply.

Our Role

FTI Consulting conducted extensive investigations into incident claims involving public examinations of 53 individuals, including key political figures, over five months, while simultaneously addressing significant media interest carefully coordinated with our strategic communications experts.
Working with our economic modelling and technology teams, the Administrators determined and quantified significant claims that may have been available against the operator of Callide C.
Our corporate finance, restructuring and economic consulting experts worked seamlessly to manage the Group’s interest in this complex asset, including conducting due diligence in relation to coal supply negotiations and operational issues.
The Administrators undertook a 12-month comprehensive transaction process, engaging with a broad range of potential financiers and investors until Sev.en Global Investments’ proposal to recapitalise the Group was agreed upon.