Corre Energy, a Dublin-based firm listed on the Euronext Dublin Stock Exchange, has seen its Dutch parent company, Corre Energy Group Holdings, use over 15% of its shares as loan guarantees, revealed Dutch financial filings. Close to a quarter of the Dutch parent’s stake in Corre Energy, equating to over 11.9 million shares, has been pledged to lenders as collateral for loans.
Simultaneously, Northern Irish investor Stream Street has claimed a stake of 19.3% in the firm as a debt repayment to the Dutch parent company. Stream Street is owned by the Boyd family, with the recently acquired stake tied to a loan provided by the parent company.
The Amsterdam-based parent company of Corre Energy is primarily owned by founder shareholders, Darren Patrick Green, Keith McGrane, and Brendan Boyd. The shares pledged to lenders not only offer them a certain degree of control over the shares but also allow them, under specific conditions, to sell some or all of the shares during the loan agreements’ tenure. A large portion of the borrowed funds is believed to have been reinvested in the business.
The filings also reveal that Frank Boyd, a property developer and one of Northern Ireland’s wealthiest men who controls Belfast-registered Stream Street, has been given approximately 15 million regular shares in Corre Energy. This share transfer is an alleged “full and final loan repayment” to Corre Energy Group Holdings.
After the transaction, the parent company will retain a 45.9% stake in the Irish firm. Last year, Corre Energy, which had hit a low with just €1.08 million cash reserves, managed to raise an additional €2.76 million via a share sale to investors.
However, Corre Energy’s shares suffered a fall in February, dipping below its initial €1 public offering price when the founding director and shareholder, Darren Patrick Green, resigned after a Singapore company he owned was implicated in an alleged tax evasion scheme by UK tax authorities.
Mr Green expressed his utter surprise over the news, stating that for quite some time, he had no involvement in that particular company’s management or directorship. Nevertheless, he asserted his dedication to the 38 per cent share he holds in Corre.