LONDON (Alliance News) - IPSA Group PLC said Monday it is talks with Rurelec PLC over the payment of a GBP2.91 million deferred payment Rurelec owes to IPSA, and warned that its working capital remains tight.
Rurelec has made an interim payment to IPSA's main creditor, Ethos Energy, but GBP2.91 million is still outstanding from IPSA's sale of its Westinghouse Siemens gas turbines to Rurelec. IPSA notes that there is "no clarity yet" on the timing of this payment.
IPSA now owes EUR2.85 million to Ethos Energy and a loan of GBP500,000 and interest to Radix FCZ. A further EUR2.6 million is due to Ethos Energy by the end of September. The company said its working capital will remain tight, and it is reliant on receiving the remaining balance of funds owed by Rurelec to satisfy these debts.
The company is looking to secure a Black Economic Empowerment partner for its operating subsidiary Newcastle Cogeneration Pty Ltd if that partner is willing to acquire a holding in the company for cash.
IPSA also plans to sell its remaining balance of plant related to previously sold turbines, held in its balance sheet at a value of GBP4 million, and put the proceeds from this and any sale of an interest in Newcastle Cogeneration towards paying off its debt and working capital.
Shares in IPSA Group are untraded Monday. It last closed at 1.83 pence. Rurelec shares were down 1.3% at 1.85p Monday.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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