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Tidal turbine developer seeks protection from creditors after acquisition fails

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Tocardo International BV (Tocardo), the tidal turbine developer located in Den Oever, North Holland province, the Netherlands, has filed for protection from creditors.

Tocardo, owned and operated by Johan W. van Breugel, filed its request with the court on Jan. 2, the same day Canadian-based Tribute Resources Inc. released a statement saying it would not complete a planned share swap with Torcardo.

According to the District Court of Alkmaar, located in North Holland province, “Temporary suspension of payment has been granted to Tocardo International BV in Den Oever, North Holland province, the Netherlands.”

In its statement, Tribute said the Term Sheet executed on July 31, 2017 between Tribute and Tocardo has now expired.

“Tribute and Tocardo have been unable to reach agreement on the final definitive agreements required to facilitate the share swap,” said Tribute, “and therefore as at this time the share swap with Tocardo will not be proceeding.

In August 2017, HydroWorld.com reported Tribute would purchase 53.5% of Tocardo’s remaining shares to add to the 46.5% it purchased in 2016.  Following completion of the acquisition, Tribute would attain 100% ownership of the company.

According to Tribute, “The executed Term Sheet outlines the manner in which the remaining 53.5% of the Tocardo shares will be exchanged for approximately 53 million common shares of Tribute through an equity swap of Tribute’s common shares. The share exchange is based upon a valuation commissioned by Tribute and prepared by KPMG dated May 24, 2017 with an effective date of December 31, 2016.”

Tribute said it will retain its current ownership of the issued and outstanding shares in the capital of Tocardo.

It is possible Tocardo will be chosen as the turbine supplier for the Minas Tidal Project in Nova Scotia, Canda, under an engineer, procure, construct arrangement, and Tribute said it is currently evaluating their options.

In 2016, Minas Energy entered into a partnership with International Marine Energy Inc. and Tocardo, using Tocardo’s tidal turbines. The new collaboration, Minas Tidal Limited Partnership, intends to test Tocardo technology at the Fundy Ocean Resource Centre for Energy in the Minas Passage in Nova Scotia.

Tocardo is best known in the Netherlands for its commercial demonstrator 1.2-MW tidal array of five T2 turbines installed in 2015 at the Eastern Scheldt storm surge barrier (Oosterschelde barrier) in the Netherlands.

The Oosterschelde barrier project cost around US$12.4 million.

In February 2017, Tocardo marked the start of its planned 20-year commercial demonstration project at the European Marine Energy Center in Orkney, Scotland, by preparing to deploy a tidal energy unit for testing.

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