IPSA.L Share News (IPSA)

Shares of power generator IPSA Group nearly doubled after it agreed to sell four of its turbines to Singapore-based Bright Day and private equity firm Bridgehouse Capital for a total of about £41m.Both the buyers have each agreed to purchase two of IPSA's Siemens Westinghouse 701 DU gas turbines and IPSA intends to use the proceeds of the sale to settle with all its creditors, and for operational purposes. Under the agreement with Bright Day, two turbines have been sold for an aggregate of $35m, including a $2m deposit that will be paid and the remainder due no later than 120 days from signing the contract.IPSA sold two turbines to Bridgehouse for $31m with a deposit of $3.9m million in aggregate payable by way of a payment of $2m in cash.The company also added that its working capital position remains tight until the sale of the turbines is completed and highlighted its need for additional working capital for operating expenses and to repay the loan notes due on 31 July 2011, unless the repayment period is extended.Despite the grim statement by the company regarding its working capital, shares of IPSA finished up by 102.4%, at 10.62p, in London trading.AR