Tax haven fund’s £55m bounty from bailed-out Bulb

A LENDER in a tax haven could receive £55million from the collapse of Bulb – despite taxpayers footing a £6.5billion bill for the fallout.

Sequoia Economic Infrastructure Income Fund, which is based in Guernsey, lent the money to Bulb. It has already been handed £14million, according to newly released documents for Bulb’s parent Simple Energy. But administrators said a full reimbursement ‘cannot be ruled out’.

Sequoia is Simple Energy’s sole secured creditor. A return of the entire sum – which will be paid from Bulb – would make it one of the few winners from the debacle.

Bulb was founded by Hayden Wood and Amit Gudka in 2014 and was once the fastest-growing company in Europe. Its demise sparked the biggest Government bailout since the financial crisis. Bulb was in ‘special administration’, which means it was propped up by the taxpayer, after its failure in November 2021.

Its lack of hedging against rapid wholesale energy price rises both before and after the collapse left it badly exposed to market volatility.

The Office for Budget Responsibility, which monitors the UK’s public finances, said the implosion of Bulb will cost an eye-watering £6.5 billion.

The figure is the equivalent of every household in Britain coughing up around £230 each.

A maximum of £4.5billion has been set aside to complete its sale to rival firm Octopus Energy.

Octopus picked up Bulb’s remaining 1.5million customers late last year. The acquisition completed in

December. Controversy over the implosion and its aftermath continues. A legal battle is brewing that could still unwind the takeover as competitor firms, including Centrica, Eon and Scottish Power, claim the deal is shrouded in unnecessary secrecy.

Sequoia, listed on the London Stock Exchange but based in Guernsey, controls more than £1.5billion in assets and backed Bulb’s founders with a £55million loan five years ago.

The loan is understood to be interest bearing, which could be added on top of any other repaid sums.

Last month, it emerged that Sequoia had struck a deal to take on Bulb’s technology assets.

Sequoia was asked if it would contribute some or all of the money to help pay for the bailout, but declined to comment.