Last checked at 10 Feb 2017 15:45
Rurelec PLC
("Rurelec" or the "Company")
Update on trading / Agreement with Ethosenergy ltalia S.p.A
Rurelec PLC (AIM: RUR), the owner, operator and developer of power generation capacity internationally, announces that in recent months the Group has received loan and interest repayments from its Argentinian Joint Venture operations which have been in line with its budget expectations and ahead of the previous year when considering a rolling 12 month period.
This has enabled Rurelec to conclude an agreement dated 10 February 2017 with Ethosenergy Italia S.p.A ("Ethos") ("the Agreement"). As part of the Agreement, provided Rurelec meets its payment obligations, Ethos has agreed to assign to Rurelec the debts it is owed by IPSA. If not assigned, such debts could have enabled Ethos to take action against IPSA for the sums owed to it, with an impact upon Rurelec in relation to two Siemens-Westinghouse TG50D5/W701DS 127.8 MW gas turbine generator packages (which were originally supplied by Ethos). Such actions would have encumbered that equipment, prejudicing Rurelec's future ability to realise two of its major assets.
The payments to Ethos will reduce Rurelec's third party debt by reducing (i) the sums payable by Rurelec to IPSA under certain agreements, and (ii) the sums payable by IPSA to Ethos.
For further information please contact:
Rurelec PLC | W H Ireland |
Simon Morris, Director Andy Coveney, Director | Paul Shackleton and James Bavister |
Tel: 020 7025 8026/8 | Tel: 020 7220 1666 |