An energy company that closes its doors after a spike in global gas prices is poised to follow dozen of its similarly struggling competitors and get into administration.
At an online bankruptcy and corporate court hearing yesterday, Judge Nicholas Briggs concluded that Orbit Energy is insolvent. Lawyers representing the company asked the judge to issue an administrative order, and lawyers representing Ofgem, the regulatory agency, consented to the move. The judge indicated that a formal administrative order is likely to be issued soon.
After examining evidence related to Orbit’s finances, he told attorneys, “In my opinion, it is evident that Orbit is insolvent and passes the bankruptcy test.”
Daniel Bayfield, QC, who led Orbit’s legal team, told the judge that several energy companies