| Thu 12 Jan 2012, 14:20 | | IPS - IPSA Group Plc - Completion of sale of turbines |
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IPS
IPSA
IPS - IPSA Group Plc - Completion of sale of turbines
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")
COMPLETION OF SALE OF TURBINES
IPSA Group PLC (AIM:IPSA), the developer, owner and operator of power
generation capacity in Southern Africa, announces that the sale of two of
its Siemens Westinghouse 701 DU gas turbines to Bright Day Pte Limited
("Bright Day") completed yesterday.
The sum of USD31 million being the balance of the USD35 million purchase
price for the pair of turbines and ancillary equipment has been paid by
Bright Day to a trust account operated by the Company`s two key creditors,
Standard Bank PLC and Turbocare SpA. Following disbursement of funds to the
key creditors the Company`s indebtedness will be reduced by approximately
GBP22.6m, leaving approximately GBP15.5m outstanding in aggregate.
Repayment in full of the Standard Bank loan and other creditors of the
Company is expected to take place on completion of the sale of the
remaining pair of turbines which are under contract to Lezayre Holdings
Limited at a price of USD31m. Until then, the Group`s working capital will
continue to remain extremely tight.
Commenting, Richard Linnell, Chairman of IPSA, said: "I am pleased to have
achieved this important milestone and whilst the completion has not
resulted in the release of working capital for the Company, it is an
important step on the path to recovery and has paved the way for a strong
start to 2012".
For further information contact:
Phil Metcalf, CEO, +44 (0)20 7793 5600
IPSA Group PLC
John Llewellyn-Lloyd / Harry +44 (0)20 7456 9191
Stockdale,
Execution Noble & Company Ltd
Riaan van Heerden, +27 (0)21 887 9602
PSG Capital (Pty) Ltd
Harry Ansell / James Joyce +44 (0)20 7220 1666
W H Ireland Ltd
London
12 January 2012
Date: 12/01/2012 14:20:12 Produced by the JSE SENS Department.
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