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GSF chair: Wind-down risks asset fire sale
1 Sep
Summary
- Board urges vote against Saba Capital's resolutions.
- Chair warns of unfavorable asset sale valuations.
- Existing plan aims for value realization and distributions.
Gore Street Energy Storage Fund (GSF) is urging its shareholders to vote against resolutions proposed by Saba Capital Management. Chairman Angus Gordon Lennox stated that an accelerated wind-down or reorganization could lead to assets being sold at significantly reduced valuations, harming the company's strategic goals.
Lennox explained that GSF is currently operating near a cyclical low for battery energy storage revenues and asset values. He cautioned that becoming an accelerated seller would weaken the company's negotiating power with potential buyers, possibly leading to lower bids or a lack of interest.
The board recommends shareholders support existing resolutions one through 15 and vote against Saba's proposed resolutions 16 and 17. GSF's current plan, announced in March, prioritizes disciplined value realization, enhancing selected projects to boost revenue, and distributing capital to shareholders, including a committed annual distribution of 7 pence per share.
