Orbit Energy poised to go into administration
A judge in the specialist Insolvency & Companies Court on Monday said that the company was insolvent.
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An energy firm which is closing its doors after a spike in global gas prices is poised to go into administration.
A judge in a specialist court on Monday concluded that Orbit Energy was insolvent.
Judge Nicholas Briggs considered Orbit’s case at an online hearing in the Insolvency & Companies Court.
Lawyers representing Orbit asked the judge to make an administration order and lawyers representing regulator Ofgem approved such a move.
It is patently obvious, in my judgment, that Orbit is insolvent and passes the test for insolvency
Judge Briggs indicated that a formal administration order would probably be made soon.
He told lawyers, after considering evidence relating to Orbit’s finances: “It is patently obvious, in my judgment, that Orbit is insolvent and passes the test for insolvency.”
Barrister Daniel Bayfield QC, who led Orbit’s legal team, told the judge that a number of energy companies had recently run into serious financial difficulties.
He said problems had been caused by high energy costs and a cap on prices that firms could charge.
Mr Bayfield said Orbit’s business was “unravelling” and added: “The company is making significant losses and it is going to run out of money soon.”
News that Orbit, which supplied 65,000 customers, and Entice Energy, which had 5,400 households on its books, were closing their doors emerged last week.
Ofgem said it would ensure all the customers find a new home at a different energy supplier.
The companies join two dozen companies in going out of business in less than three months following a spike in global gas prices.
About four million customers in the UK have been hit by the failures.
The biggest failure to date was Bulb once an energy success story which fell into administration on Wednesday.