While the parties warring over the 2021 turbine failure at the Callide C Power Station cross swords over subpoenas and whether legal privilege attaches to a much anticipated report into the incident, the general purpose liquidators (GPLs) involved are struggling to get paid.
According to documents lodged with ASIC Deloitte partners Richard Hughes and Grant Sparks, in their capacities as joint & several administrators of IG Power (Callide) Ltd (IGPC), asked creditors back in April to approve $4.8 million in remuneration.
IGPC was one of two joint venture companies operating the power plant when unit 4 exploded in May 2021.
The accident led to the cessation of supply of electricity from the plant and an understandable extinguishment of revenues available to IGPC and JV partner Callide Energy Pty Ltd (CEPL).
In 2023 IGPC appointed Hughes and Sparks as administrators and much of their work has involved consideration of what claim if any IGPC will have against Queensland state-owned CS Energy Limited, (CSEL) which had been engaged by the JV partners to operate and maintain the plant.
So far the pair have gained approval for almost $1.5 million in fees but last month they notified ASIC that the response to their most recent application for creditor approval without a meeting had been a resounding no, delivered by shareholder and creditor Sev.en Gamma AS.
iNO readers may be aware that Sev.en Gamma has already been to court to have FTI Consulting pair John Park and Ben Campbell appointed Special Purpose Administrators (SPAs) of IGPC and has also commenced proceedings to have Hughes and Sparks removed.
For their part Hughes and Sparks have applied to the courts for judicial guidance in respect of whether they would be justified in recommending to creditors that they enter into a deed of company arrangement (DoCA) being proposed by CEPL.
Needless to say the fight has required the GPLs to make multiple applications to court extending the convening period for the second meeting IGPC creditors and adding more punch to this lawyers picnic is the existence of report into the failure being prepared by forensic engineer Sean Brady which is said to be due to be provided next month.
Sev.en Gamma’s application has provoked multiple skirmishes between the parties, the most recent of which involved a contest over whether or not legal professional privilege will attach to Dr Brady’s report.
CSEL, the Queensland Government-owned entity caught in an imbroglio largely of its own making was desperate to show that it does.
As is explained by Federal Court judge Roger Derrington in Sparks, in the matter of IG Energy Holdings (Australia) Pty Ltd (Administrators Appointed) [2024] FCA 613, in his view it doesn’t.
“The difficulty in this case for CSEL in establishing that Dr Brady’s report was or is to be used for the dominant purpose of litigation or legal advice is that those involved in CSEL or who speak on its behalf, have indicated, on several occasions, that it is intended to have a variety of other important purposes. This puts in question whether obtaining legal advice can be said to be the predominant purpose or the paramount, prevailing or most influential purpose for the commissioning of the report,” the judge said.
Further reading:
The C4 220VDC battery was isolated with the unit in service, by maintenance personal without a written high voltage isolation?
The insurance has refused payment to CS Energy Ltd.
The RTS insurance will be self insurance by Qld Gov, Why?
They provided a picture of the C4 220V battery, a small battery in a large space, what happened to the original battery and the interlocking that prevents isolation with the unit in service
The C4 unit operator did not know that that the 220VDC had been isolated.
The current class action continues.