Some hard hitting words from the new board at Aim-listed tiddler Renewable Power & Light.
This should not surprise anyone who has followed the company's recent history. Earlier this year a bitter battle of words over several weeks between Renewable's old board and investment group Thalassa culminated in May with the old board being ousted and Thalassa's Duncan Soukup installed as executive chairman. Accusations and claims of defamatory statements coloured the whole process, and today the row continues.
Renewable was effectively a cash shell, but Soukup now describes the company as "a Buggers Muddle" and says it is unlikely it will be able to attract any new investors. The financial position is said to be worse than expected, and the new board is looking into what happened. Here's how Soukup describes the situation in his own words:
To be blunt, [the company] is a Buggers Muddle! The new board and management are working around the clock to establish who was responsible for the roughly $90 million of losses suffered by the company, which include legal fees in excess of $3.5m spent on litigation against the company's former chief executive officer. As reported in the company's press release of 11 November 2008 this litigation resulted in an out of court settlement.
I am confident that our investigations will throw light on who was responsible for this abominable mess and that we will then do everything we can to seek redress with a view to generating a recovery for shareholders. In the meantime the board is preparing a circular to shareholders with proposals for a reorganisation and a new strategy for the company.
