HydrogenOne Capital Growth PLC (LSE:HGEN) has issued an update regarding HH2E, a German developer focused on green hydrogen projects.
HH2E has been undergoing a fundraising process to support its initial development projects; however, due to the challenging funding environment, it has been unable to secure a financing partner at the required scale within the necessary timeframe. As a result, the company is expected to enter administration.
HydrogenOne, which has provided approximately £1 million in shareholder loans to HH2E, noted that these loans are subordinated to other creditors under German insolvency law.
The administration process will aim to prioritize the interests of all creditors, and HydrogenOne will provide additional market updates as the situation progresses.
HydrogenOne's interests in HH2E had a book value of £11 million at the end of September, and it accounting for about 8% of the company’s net asset value, the company noted.
In London, HGEN shares dropped 16% on the news to change hands at 31.46p.