Equatorial Palm Oil plc Update on Default Notice (6235L)
August 14 2013 - 2:00AM
UK Regulatory
TIDMPAL
RNS Number : 6235L
Equatorial Palm Oil plc
14 August 2013
14 August 2013
EQUATORIAL PALM OIL plc
("EPO" or the "Company")
Update on EPO's default notice issued to Biopalm Energy
Limited
The board of EPO (the "Board") announced on 8 July 2013 that it
had issued a written notice ("Notice of Breach") to its joint
venture partner, Biopalm Energy Limited ("Biopalm") (a wholly owned
subsidiary of Indian conglomerate, the Siva Group), setting out
that Biopalm is in material breach of its obligations under the
investment agreement signed between the parties on 10 December 2010
(the "Investment Agreement").
Biopalm is required under the Investment Agreement to arrange
and/or contribute, either directly or through any member of its
group, any external funding required by the joint venture company,
Liberian Palm Developments Limited ("LPD") (up to a maximum of
US$30,000,000) (the "Commitment").
Following the Notice of Breach, the parties had 30 days using
best endeavours to resolve the dispute by discussions with their
respective Chairman. As the 30 day period has now expired, the
Company can confirm that no such resolution of the dispute has
taken place and that the next step for dispute resolution under the
Investment Agreement is to seek resolution by arbitration in
accordance with the Arbitration Rules of the Singapore
International Arbitration Centre.
In the meantime, EPO continues to negotiate and work with
Biopalm regarding the Commitment with a view to an amicable
solution being reached, but has reserved all rights to take action
against Biopalm under the Investment Agreement.
EPO shall make further announcements regarding the above, and
its continued discussions with Biopalm, in due course.
- Ends -
For further information, please visit www.epoil.co.uk or
contact:
Equatorial Palm Oil plc
Michael Frayne (Executive Chairman) +44 (0) 20 7766 7555
Strand Hanson Limited (Nominated
Adviser)
James Harris +44 (0) 20 7409 3494
Mirabaud Securities LLP (Broker)
Peter Krens +44 (0) 20 7484 3510
This information is provided by RNS
The company news service from the London Stock Exchange
END
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