Busted flush ?31 May 2024 07:23
Furthermore, the Group has not been able to meet its contractual obligations to provide
performance guarantees in support of certain of the EPC contracts awarded in 2023, and
consequently there is a risk that one or more of these contracts could be terminated. In particular,
the Group has received a notice of default from a key customer requiring a performance guarantee
to be posted by 16 June 2024. Failure to do so would entitle the customer to terminate the
contract, which could have a detrimental impact on the liquidity of the Group and the Group’s
ability to proceed with the Financial Restructure. The Group has made arrangements to provide
the performance guarantee, but requires bank lender consent for the posting of the required cash
collateral. Discussions are ongoing but this consent has not yet been provided.
As part of the ongoing discussions, the lender group has required the Group to make preparations
for alternative outcomes to a successful Financial Restructure, as set out below. The future
intentions of the lender group cannot be known with certainty.