Member Info for optimist13

There are £13m of impairment provisions in the accounts for EdS. Not sure how much of that relates to unpaid loan and interest payments, but as it is allegedly one of the most efficient plants in Argentina and the country is desperately in need of more electricity, I expect most of the impairment to be eventually reversed. Any accountants on the board have a view on this?

The share price was dropped again on minimal sales, but I had to place limit bids to buy shares. Managed to get 2 x 100k and now we are up 6.25%. Expect we will hear some news this week from IPSA which should give us a good indication on which direction we will be heading.

Interesting development: http://www.investegate.co.uk/global-resources-inv--grit-/rns/proposed-subscription-and-open-offer/201608191510027083H/ On 28 June 2016 the board of directors of GRIT (the "Board") announced a number of proposals ("Proposals") including that it had entered into a subscription agreement with RDP Fund Management LLP under which RDP agreed conditionally to subscribe for a total of 40,000,000 new ordinary shares of £0.01 in GRIT ("Ordinary Shares") raising £2.0 million for the Company and that existing shareholders would be given the opportunity to subscribe for up to 10 million Ordinary Shares on the same basis to raise a further £0.5 million for the Company through an open offer. The Board has further discussed the Proposals with the Company's largest shareholders and has concluded that there is insufficient shareholder support to proceed with the Proposals, which will not now take place. The Company will repay £1.0 million nominal of 9% Convertible Unsecured Loan Stock 2017 to LIM Asia Multi-Strategy Fund Inc ("LIM") before the end of August 2016. It expects to repay the balance of £2.5 million nominal of 9% Convertible Unsecured Loan Stock 2017 to LIM from the proceeds of continuing portfolio realisations.

Just re-reading the accounts for last year for confirmation that the company still has a first charge over the assets of EdS and it it is in note 16d: The amounts owed by subsidiary companies include: 1 Loans to subsidiaries in Chile £7.8 million and Peru £8.5 million are repayable on demand. At a group level, these loans have been impaired to £3.0 million in Chile and by £1.1 million in Peru. The loans to Chile and Peru bear Zero per cent interest at rates. The loans Peru are expected to be recovered once the assets have been sold, which management expect to occur during 2016. 2The amounts owed by joint venture companies are interest bearing at rates of between 8 per cent and 18 per cent and are repayable on demand. During the period the Group received US $3.7 million from EdS in service of the amounts due £6.7 million (2014: £8.6 million) is secured by a first charge against the assets of EdS.

Forget that last comment, getting my charts mixed up. The difference is only 13% from its low in March.

Just looking at the exchange rates, and I see the Peso has increased 38% in value against Sterling since its low in August. That will help when we see further funds being repatriated from Argentina.

now wanting 0.99p for 100k shares. Which way is it going to go. Do we sell some of the assets and remain as an independent company, or are we bought out by another player. Either way, the shares are worth a lot more than the current price, and there is no chance of a placing as the resolution has been rejected at the AGM.

Spac3y - you sound very positive about the administrators reasons for blocking the resolution. Were you at the AGM, or do you know the administrators? Whether or not PE via IPSA figure in the plans for Rurelec moving forward, the fact that the company has only taken a short-term loan leads me to believe that the end-game is in sight. As I have said previously, I hope that PE is not involved going forward, and the fact that IPSA will be de-listed at the end of the month if a reverse takeover is not announced, is in my view good news for Rurelec, but unfortunately not so for IPSA shareholders. It is worth bearing in mind the administrators for Sterling Trust hold a significant block of shares in IPSA as well. Will that have a bearing on the outcome.

Interesting that the 'real' buy price has moved up this morning. Now being asked to pay 0.96p for shares and the bid is 0.678p.

Further extract: "Among other advantages, foreign investors will be offered the elimination of capital restrictions including the possibility to repatriate profits along with maximum efforts by the administration to control inflation once an agreement is reached regarding the payment of the Argentine debt to the so-called “vulture” speculative funds and the country's regaining access to the global capital markets."

Argentina continues to restore its battered reputation: http://en.mercopress.com/2016/08/16/macri-preparing-a-major-show-to-the-world-s-business-elite-his-vision-of-a-modern-argentina Extract: "Macri preparing a major show to the world's business elite his vision of a modern Argentina Argentina is organizing a major business and investment forum next month, September 12/15, in Buenos Aires and more than 1,500 world business leaders and representatives of government and economic institutions are scheduled to attend the event, probably the largest in recent times in Latin America."

You don't make statements like this in the annual report unless there is some substance to the words: "Rurelec's significant investment in Argentina over the past decade has resulted in a flagship project at Energia del Sur, which is a thermal plant believed to be one of the most reliable in Argentina. It operates under an enhanced value U.S dollar denominated contract with some four years still remaining before renegotiation of contracts, as well as generating to the spot market, which is Argentine Peso based."

IPSA have until the 29 August to announce a reverse takeover otherwise their shares will be de-listed. So, if as many on here suspect and PE is attempting some sort of tie-up, then time is running out. I see the MM's are also up to their tricks again this morning, dropping the shares 12.12% on the selling of £1865.00 worth of shares. Fortunately I was online at the time and managed to buy 300k shares at 0.73p. Our assets, even in a fire sales are worth an awful lot more than the current share price and I firmly believe the administrators of Sterling Trust have potential buyers lined up for the sale of their 53% share holding in Rurelec. If they didn't, why would they block the resolutions at the AGM. All very unsatisfactory, but I believe for better or worse, there is not long to wait for confirmation of where the company is heading.

I could be well off the mark, but I suspect that the administrators of Sterling Trust, who commissioned experts to solicit buyers for the block of shares, have a buyer and a plan for the Rurelec business which does not fit in with PE's plans. Wouldn't that be nice. As I said the other day, matters are now coming to a head and PE only has a few weeks left to make an announcement or see the de-listing of IPSA. The directors of Rurelec will have to consult with the administrators of Sterling Trust given that they speak for 53% of the company, so at least the major shareholder should know what is going on. With any luck we will end up under new ownership which does not involve PE or any of his cronies, and the business can begin to recover from this unfortunate period in its history.

Yes, you are correct, Resolutions 5 & 6 were about the issue of additional shares. This will clearly force the hand of the directors and it must be assumed that the administrators for the Sterling Trust block of shares voted against the motions.

Surprise, surprise...a buy has actually gone through as a buy. The offer price is slowly creeping up.

Two late reported buys last night of 100k shares, but again showing as sells. AGM is at 11.00am.

This from the final results dated 15 July 2016: "Following the necessary disposals currently under negotiation, a leaner company unburdened with debt will be better placed to negotiate with partners to determine the future." Surely it is not too much to ask that we receive an update on this tomorrow.

Yet more buys going through as sells. Let's hope we do get some sort of update tomorrow at the AGM on the asset sales and rid ourselves of the MM's orchestrated death spiral.

Just added another 200,000 @ 0.78p, which again is showing as a sell.