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HIE steps in but no bidders to keep firm going

Agency buys Pelamis assets but all remaining staff laid off

Pelamis Wave PowerHighlands and Islands Enterprise (HIE) is to acquire the assets of collapsed renewables firm Pelamis Wave Power, but the company will not survive as a going concern and the remaining 16 employees will lose their jobs.

Administrators at KPMG say HIE, the economic development agency for the north of Scotland, is the preferred bidder and expects to conclude talks soon.

But the loss of jobs just before Christmas will be a particularly cruel blow. Blair Nimmo, joint administrator with Gary Fraser, said there were no final offers to acquire the business and assets as a going concern.

Nimmo and Fraser were appointed on 21 November and made about 30 Pelamis employees redundant immediately. They were employed in the design, manufacture and operation of wave energy converters which the company had been testing at the European Marine Energy Centre in Orkney.

Nimmo said: “Following the sales process, I am pleased to confirm that Highland and Islands Enterprise has been appointed preferred bidder in relation to acquiring the assets of Pelamis Wave Power Limited.

“Over the coming days we will be working to finalise the sale and are hopeful that the transaction can be concluded in the near future.  We would like to thank all parties who expressed an interest during the sale process.

“Unfortunately, as no going concern solution has been found, the remaining staff will shortly be made redundant.  We are working with government agencies to ensure employees obtain as much assistance as possible.”

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