An infrastructure investor owned by Schroders, the fund management behemoth, is in pole position to buy a solar farms operator that received hundreds of millions of pounds from a scandal-hit local authority.

Sky News understands that Schroders Greencoat has become the leading contender to acquire Toucan Energy, which collapsed into administration exactly a year ago.

It was unclear this weekend whether Schroders Greencoat was in formal exclusivity to buy the portfolio of more than 50 solar parks.

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Interpath Advisory, which is overseeing the administration process, appointed KPMG – the accountancy firm from which it was spun out – to handle the auction.

Other bidders which had been in contention until recently included GLIL and CKI, the Hong Kong-based infrastructure giant.

Toucan’s collapse came after Thurrock Council had invested more than £650m into the business over a four-year period.

Although the local authority will receive a significant repayment from the sale of the solar assets, Toucan’s collapse could yet cost taxpayers tens or even hundreds of millions of pounds.

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Thurrock’s financial mishaps echo those of other councils that have invested in ill-fated private sector companies, including a significant number in the energy sector.

The timetable for a deal being completed was also unclear.

A spokesman for Schroders declined to comment.

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