| Wed 9 Feb 2011, 16:00 | | IPS - IPSA Group Plc - Extension of Marketing Agreement and Change in Repayment |
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IPS
IPSA
IPS - IPSA Group Plc - Extension of Marketing Agreement and Change in Repayment
Date of Loan Notes
IPSA GROUP PLC
(Incorporated and registered in England and Wales)
(Registration Number 5496202)
AIM Share Code IPSA ISIN GB00BOCJ3F01
JSE Share Code IPS ISIN GB00BOCJ3F01
("IPSA" or "the company")
Extension of Marketing Agreement and Change in Repayment Date of Loan Notes
IPSA GROUP PLC (AIM:IPSA), the developer, owner and operator of power generation
capacity in Southern Africa, announces that it has agreed a short extension of
the Marketing Agreement which governs the marketing of the Company`s Siemens
Westinghouse 701D gas turbines and the distribution of proceeds received in
connection with a sale, whilst the parties decide whether a longer term
extension is required.
A number of indicative offers for all four of its 701D turbines are under
consideration. The extension of the Marketing Agreement is intended to enable
completion of negotiations and prepare necessary contracts for the sale.
The Marketing Agreement also provides for a standstill arrangement whereby
Standard Bank and TurboCare, the Company`s two largest creditors, have
undertaken that they will not take proceedings against IPSA to recover the debts
owed to them and that they will not enforce any security rights they may have
during the term of the agreement. If not extended further, the Marketing
Agreement will expire on 21st February 2011.
The Company also announces that the repayment date of its outstanding issue of
GBP650,000 of nominal value of Loan Notes, together with accrued interest, which
were issued to RAB Energy Fund Limited and certain other investors, has been
extended to 30th April 2011. In the event the Marketing Agreement expires
before this date, the Loan Notes will remain repayable on demand. The Company
intends to repay the Loan Notes either from a re-financing of IPSA`s wholly
owned power generation subsidiary, Newcastle Cogeneration ("NewCogen"), which is
currently under negotiation, or out of the proceeds of the sale of the 701D
turbines.
New contracts are currently in the final stages of negotiation for gas supply
and steam offtake with the expectation of re-starting the NewCogen combined heat
and power (CHP) plant at Newcastle in the near future. Start-up of the CHP
would include the commencement of power sales to Eskom under the MTPPP contract
signed in August 2010.
For further information contact:
Peter Earl, CEO, IPSA Group PLC +44 (0)20 7793 5615
John Llewellyn-Lloyd / Harry Stockdale, Execution Noble & Company Ltd +44
(0)20 7456 9191
Riaan van Heerden,PSG Capital (Pty) Ltd +27 (0)21 887 9602
London
9 February 2011
Date: 09/02/2011 16:00:01 Produced by the JSE SENS Department.
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