Administrators appointed to Ethical Power Group Limited are reviewing the sale of several key subsidiaries completed shortly before the company’s insolvency.

The intermediate holding company for the UK-based renewables developer entered administration on June 10 2026 after HSBC, acting as qualifying floating charge holder, appointed Interpath administrator.

The appointment suspended a winding-up petition that had been brought by HMRC over outstanding VAT liabilities within the wider Ethical Power group.

Newly filed administrator proposals reveal that, around May 20, a group restructuring resulted in a commitment to sell the company’s shareholdings in Ethical Power Utilities Limited, Ethical Power Renewables Limited, Ethical Air Limited and Ethical Aviation Limited to related party Triple Eight Energy Limited.

The transaction subsequently completed on July 8.

Administrators said the disposal will form part of their investigations because Triple Eight Energy is controlled by Thomas Kneen, founder and CEO of Ethical Power.

The insolvency filing states that the administration strategy includes reviewing director conduct and investigating transactions completed before the appointment, including the subsidiary disposals to the connected-party buyer.

The insolvency follows financial difficulties across several operating subsidiaries within the Ethical Power group.

Administrators said cash-flow pressure emerged after non-payment for project work by customers and because the company had provided guarantees supporting facilities granted to subsidiaries and other group entities.

The filing describes Ethical Power Group Limited as a non-trading holding company that owned interests in multiple group businesses involved in solar development, engineering, procurement and construction, grid connections and asset management activities.

The company held investments in a range of group entities prior to administration, including Ethical Power Connections Limited and Gunning Transmission & Distribution Services Limited, both of which are already in administration.

According to a statement of affairs, the group’s investment portfolio carried a book value of approximately GBP 7.94m.

The largest individual investment was a shareholding in Gunning Transmission & Distribution Services with a book value of approximately GBP 7.15m.

A further GBP 561,135 was attributed to Ethical Power Connections.

The company was also owed approximately GBP 9.99m by intercompany debtors.

Those receivables included approximately GBP 5.61m owed by Ethical Power Renewables, GBP 4.09m owed by Ethical Power Investco Limited and GBP 280,719 owed by Ethical Power Group Holdings.

However, administrators cautioned that recovery prospects are uncertain, particularly because Ethical Power Renewables filed notices of intention to appoint administrators on June 26 and July 10.

The statement of affairs shows unsecured creditor claims of approximately GBP 18.77m.

The largest unsecured creditor is the Greg Skinner-controlled Sustainable Holdings Limited, which is owed approximately GBP 17.45m and is now part owner of Ethical Power parent company Hive Energy following another administration process for the latter undertaken earlier this year. .

Secured claims include approximately GBP 5m plus interest owed to Hive, GBP 3.1m owed to Ethical 2023 Project LLP and approximately GBP 1.9m owed to HSBC, alongside a contingent exposure of up to GBP 15m relating to facilities provided to other group companies.

To fund the administration process, Triple Eight Group, the parent company of Triple Eight Energy, has provided GBP 250,000 under an administration funding agreement.

The funding can be used to meet administration expenses, secured creditor claims and any prescribed part distributions.

Interpath said repayment of the funding is conditional on all company liabilities being discharged in full and currently does not expect that condition to be met.

At present, administrators said it remains uncertain whether unsecured creditors will receive any dividend.

The administrators are also assessing whether any value can be realised from remaining subsidiary shareholdings and intercompany receivables while continuing investigations into the pre-administration restructuring and connected-party transaction.