Member Info for optimist13

EdS owe Rurelec �37.9m and we have a charge over the assets to boot. Rurelec should force a sale of EdS as I am sure there would be willing buyers for the power company. Our mkt. cap. now stands at circa �9m and PE should not be allowed to buy the company on the cheap.

I think GFD is going to be busy writing to the SFO again. This is what the company said when justifying the disposal of the business back in June 2015: "In anticipation of a planned closer co-operation with the South American group, the Board has agreed that the project development activities under Independent Power Corporation PLC ("IPC") should be spun out of Rurelec now that its task in Latin America has been completed. IPC was acquired for �4 million in June 2013 to consolidate the replacement of capacity through greenfield development of projects led by IPC during the arbitration process. The business separation will be achieved by Peter Earl acquiring outright ownership of IPC in a transaction whereby the principal assets of IPC will be transferred up to Rurelec leaving IPC with only nominal assets and fixed overheads of some �500,000 per annum. Peter Earl will step down as both a director and CEO of Rurelec and will purchase IPC and its development team for nominal consideration. Former Chairman, Andrew Morris, has agreed to take over as CEO of the Company. Both Peter Earl and IPC are entering into consultancy agreements with the Company so as to maintain continuity and a smooth handover for the next stage of Rurelec's planned return to a dividend paying company. The net effect will be to reduce overhead within Rurelec and re-establish the core business of the Group as ownership of cash-producing power plants in Latin America to be valued on the basis of income." What a joke.

Is that the business he stole from Rurelec for �1?

They also don't mention how much will be reclaimed via insurance. I can't believe they do not have cover for such things.

http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/RUR/13402538.html Further to the announcement of 18 September 2017 The Directors of Rurelec (AIM:RUR), have been informed that the management of Energia del Sur S.A. ("EDS"), which owns and operates the 136 MW Southern Patagonian CCGT power plant in Argentina has completed the temporary modification of the steam turbine to remove certain rows of turbine blades ahead of repairs during planned maintenance in 2018. The Steam turbine will run at approximately 21 MW and generation has restarted giving the power station a maximum nominal output of 97MW. Owing to a resulting reduction of revenue arising from the more profitable Resolution 220 contract for the electricity generated by the steam turbine, EDS anticipates a material loss of income, which in turn is likely to lead to minimal payments to Rurelec until the plant is restored to full generating capacity. How convenient. No doubt it will be restored to full power if PE and his cronies get control of the company.

Darchidze, I would be careful what you say. The administrators for Sterling Trust are looking into the conduct of all of the directors for the 3 years prior to the administration, not PE specifically. Additionally, it would appear that there is more than one interested party in acquiring the 54% holding of Rurelec from Sterling Trust and the administrators have a duty to obtain the best price for the Sterling Trust assets. We should be seeing some holdings disclosed over the next few days, which may add some further light to the current composition of the share register.

DL says he has big plans for this company with its main market listing, but when we get the next news is anyone's guess. Quite happy to hold as I feel confident of seeing a very good return from the current price.

I really do not think people comprehend the true value of this company. The interim report confirms again that Rurelec are owed �37.9m from EdS for loans and interest payment. Plus, we actually own 50% of EdS and have a first charge over the assets of the company. Additionally, Rurelec have confirmed that the loan to BPAC will be repaid no later than June 2018. The following comments from the report are worth restating: "As previously announced, the Group has arranged for extended facilities from BPAC, totalling �1.6 million. Despite the operational problems experienced at our Argentinian investment (as previously reported), Rurelec has received repayments during the period against its outstanding loans to the Argentinian plant. This has enabled Rurelec to now start repaying the loan received from BPAC. In the event that cash receipts from Argentina continue as forecast, it is expected that all the facilities from BPAC will be repaid by no later than June 2018. Cash flows remain a concern. However, the current liquidity position of Rurelec is stronger than it has been for at least two years. Given the progress on the sale of the Group's assets and the improved cash remittances from our Argentine operation, the directors continue to adopt the going concern basis of accounting."

You have to laugh at the way the MM's are manipulating this stock. Decent buy at the close of play last night, and then we have a sell of 13,414 shares and the share price is marked down 1.31%.

I have only just connected the fact that WH Ireland are acting for Rurelec in relation to the possible takeover, yet have been operating a short on the company's shares. That doesn't seem right to me or am I missing something.

Thanks for that. Email sent.

Does anyone have the email address handy for the company. I can't get the email link to work on the website.

GFD, good point. I think I will notify the company just to make sure I don't fall foul of the regulation.

Thanks for confirming. It will certainly be interesting to find out where the remaining bulk of the shares are held after you exclude Sterling Trust and YF Finance.

I take it you are still holding over the 1% threshold then?

I forgot about that. My wife and myself hold over 1%, but as they are in separate accounts I do not need to disclose the holding.

W H Ireland now down to 31,436 of their short: https://investegate.co.uk/w-h--ireland-limited/rns/form-8-5--ept-non-ri-/201710171353228439T/

Thanks for the reply. They have clearly been invested for a long time so will have an average share price far in excess of the price today. I wonder what price they will accept to sell their block of shares.

Do we know who YF Finance are, as the website still shows them holding 17.5% of the shares.

Plus, the directors hold very view shares between them, so holders here could probably hold sway over the outcome if the offer isn't good enough.