Sequoia Economic Infrastructure Income Fund Ltd (SEQI) said that it has been developing plans with an unnamed borrower to maximize recovery of a loan for its Clyde Street hotel investment while expecting a US$25 million cash distribution from its Bulb Energy investment.

SEQI holds a primary secured interest in the Clyde Street Hotel in Glasgow. Following a private mediation process and a partial settlement of claims with Bulb Energy's administrators, SEQI anticipates receiving a cash distribution of GBP25 million (US$31.5 million) from Bulb. Of this sum, GBP9 million (US$11.3 million) is expected imminently, and an additional GBP16 million (US$20 million) is anticipated in or shortly after September 2024, subject to predefined criteria that SEQI foresees meeting. In the event of a deferral until or shortly after September 2025, the deferred amount will rise to GBP18.4 million (US$23 million). This brings the total recoveries from Bulb's defaulted loan to GBP50.3 million (US$63.4 million), compared to the original outstanding principal of GBP55 million (US$69 million) at the onset of the special administration.