Last checked at 20 Sep 2013 07:00
Trading Emissions plc
Investment Update
Trading Emissions PLC ("TEP" or the "Company") announces that its wholly owned Brazilian subsidiary has been informed by the senior management of Bionasa Combustível Natural S.A ("Bionasa") that the business is experiencing severe financial difficulties.
In 2007, TEP invested, through its subsidiary, R$125 million in acquiring 25% of the equity of Bionasa in the form of preferred shares. The conversion of its preferred shares into a controlling equity interest in Bionasa has been the subject of an arbitration process under the auspices of BOVESPA, the stock exchange of Sao Paulo, since 2010. Bionasa's plant was commissioned and became operational in May 2011. It has not produced or delivered biodiesel since December 2012 and has been experiencing increasing liquidity difficulties during 2013.
TEP's Brazilian subsidiary continues to work with all parties to explore financing options for Bionasa to enable the business to recommence operations.
However, whilst the Board of TEP still hope to realise some value from this investment it also expects that a write down on the carrying value of Bionasa will be required as a result of these financial difficulties.
Further information will be provided to shareholders with the publication of TEP's audited financial statements for the financial year ended 30 June 2013, which are expected to be issued before the end of October 2013.
Enquiries:
IOMA Fund and Investment Management Limited (Philip Scales) | +44 (0)1624 681 250 |
Liberum Capital Limited (Steve Pearce / Tom Fyson) | +44 (0)20 3100 2222 |