ThomasLloyd Energy Impact board argues 'no evidence' accounts will be delivered by deadline

investmentweek.co.uk:

The board added the manager «appears to misunderstand its key role and relationship with the company» if it does not see why material information should be provided to the board.

Responding to the manager's latest statement, the board wrote: «There is no evidence that the investment manager can realistically expect to deliver on its ‘aim' of publishing the 2022 accounts by 30 September 2023.»

Uncertainty over the valuation of the RUMS project — a solar park construction project in India — in which 8% of TLEI's portfolio was invested, prevented the audit of the 2022 accounts which led to the trust's temporary suspension.

ThomasLloyd Energy Impact manager denies board's whistleblower accusations

Since then, a battle has ensued between the parties as, according to the board, the manager was aware a year ago of substantial increases in costs and capital requirements associated with the RUMS project, which meant it would not be commercially viable, but did not inform the board of this fact.

The board has insisted that its own statements from 15 August — in which it revealed d that a whistleblower had suggested the board had been misled by the manager with regards to the RUMS project — were not false.

The board also rebuffed the manager's recent comments, arguing it had ignored a number of key factors:

 "[The comments] ignore that the choice facing the company has been to either proceed with a project expected to be significantly value destructive to shareholders or incur liabilities relating to non-completion which could be up to $33.5m. Describing the exposure to the company as ‘theoretical' is misleading.

«Ignore that, whilst project returns may now be ‘increasing', this is from a very low base and the net present value