UK Storage Developer InfraStrata's Board is Ousted

The board of Northern Ireland gas storage project developer InfraStrata has been ousted.

Resolutions at a general meeting, held in the morning of June 27, of the AIM-listed company were carried by more than 55% of shareholders to appoint challengers Adrian Richard Pocock and Peter Verdun Wale as sole directors with immediate effect and to dismiss Ken Ratcliff, Stewart McGarrity, Andrew Hindle and Maurice Hazzard.

The Islandmagee gas storage project site in Northern Ireland (Photo credit: InfraStrata)

Ratcliff was InfraStrata chairman and McGarrity its managing director, Hindle was the company's CEO from 2008 until last year, while Anita Gardiner had already stepped down as joint managing director June 26. As InfraStrata’s nominated adviser, Allenby Capital said it is required to undertake customary due diligence regarding the new directors, adding this due diligence is ongoing.

In May, InfraStrata said it risked running out of cash by August and appealed for non-binding offers with regard to this £300mn ($383mn) project. However none has been forthcoming despite Centrica’s announcement last week that it is to close the UK’s main storage facility Rough – a decision that in less depressed times might have spurred interest in the InfraStrata plan is to develop a 0.5bn m³ working gas storage facility at Islandmagee, near Belfast.

On June 26, the UK minority conservative government announced a special £1bn package of funding over the next two years for infrastructure and other areas in Northern Ireland under a deal to secure the support of ten parliamentarians from the province’s Democratic Unionist Party. Both parties working together have a narrow parliamentary majority. But there’s no explicit guarantee of any funding from this, or EU funds, for the Islandmagee venture.

Update as at 4pm GMT: Pocock has assumed the role of InfraStrata CEO and has appointed Wale as non-executive director and interim chairman. Both acknowledged in a statement the role of Allenby Capital in conducting due diligence checks on them. Pocock added: "We acknowledge the achievement of the former directors of getting the Islandmagee project to its current stage and we look forward to their ongoing support."

Mark Smedley