Rurelec PLC Short Term Loan Facility and Trading Update (1272V)
April 13 2016 - 11:55AM
UK Regulatory
TIDMRUR
RNS Number : 1272V
Rurelec PLC
13 April 2016
13 April 2016
Rurelec PLC
("Rurelec" or the "Company")
Increase in Short Term Loan Facility and Trading Update
The Directors of Rurelec PLC (AIM: RUR), the owner, operator and
developer of power generation capacity internationally, are pleased
to announce that the Company has increased the existing short term
loan facility of GBP850,000 (the "Initial Facility") with Bridge
Properties (Arena Central) Limited ("BPAC") by an amount of
GBP350,000 (the "Increased Facility"). The Increased Facility is
now GBP1,200,000. As announced on 18 February 2016 GBP850,000 was
drawn down on that date, today the Company has drawn down an
additional GBP150,000. The terms and conditions are as per the
Initial Facility. The proceeds are to be utilised for working
capital for the Company and its operations in Chile and Peru.
The Loan is intended to allow the Board time to source further
long term funding. There can be no guarantee that long term funding
will be available to the Company. Notwithstanding the Increased
Facility, the Company's cash position continues to be extremely
tight.
The Directors are exploring how best to arrange for the Company
to benefit from the cash generated by the asset in Argentina in
which it has a 50 per cent. interest. The Company announces that
receipts in the first part of the year from its Argentine joint
venture, Energia del Sur S.A. ("EdS"), have been significantly
below forecast in 2016. This is largely due to structural changes
in the Argentine electricity market, whereby the subsidies from the
state are being reduced whilst at the same time prices to the end
users are being increased. This has led to cash shortages within
the sector as this transition takes place. Whilst the Company
expects these changes and Argentina's widely reported exchange
controls relaxation will be beneficial to the Company, the short
term effect has been that EdS has moved from collecting debt from
45 days of revenue to 90 days of revenue. The plant to date is
performing to budget at EBITDA level for 2016 and it is meeting its
third party obligations from its own resources. The Company expects
cash receipts for the full year to be at a similar level as
2015.
For further information please contact:
Rurelec PLC W H Ireland
Simon Morris, Director Paul Shackleton and James
Bavister
Tel: 020 7025 8026/8 Tel: 020 7220 1666
This information is provided by RNS
The company news service from the London Stock Exchange
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