React Energy PLC Petition to appoint Examiner (1010N)
14 May 2015 - 1:00AM
UK Regulatory
TIDMREAC
RNS Number : 1010N
React Energy PLC
13 May 2015
13 May 2015
REACT Energy plc
("REACT" or the "Company")
Petition for Examinership
REACT Energy plc (AIM: REAC), has today announced that the
directors of REACT and its related companies Newry Biomass Limited,
Enfield Biomass Limited, Reforce Energy Limited, Grass Door Limited
and Plymouth Biomass Limited ("REACT and related companies") have
applied to the High Court in Dublin to seek the appointment of an
examiner. REACT and related companies are now under the protection
of the court under the examinership procedure.
Under Irish Law the examinership process provides court
protection to enable the appointed examiner of companies to put
together a scheme of arrangement with creditors with a view to
allowing the companies to trade as sustainable businesses post the
examinership.
REACT and related companies have sought to enter examinership
with the objective of restructuring the business to create a
sustainable business model which is currently hampered due to
funding issues arising from inter alia disputes with landlords and
legal actions by certain creditors.
The decision to seek examinership follows the suspension of
funding discussions with a strategic investor which resulted from a
dispute with the landlord on its Enfield site, related difficulties
in financing the repowering of its Newry site and actions taken by
certain creditors of REACT and related companies.
An Independent Accountants' Report from Grant Thornton on REACT
and related companies has concluded that it is possible for a
sustainable and profitable business to emerge from the examinership
process based on a restructuring of REACT and related companies.
Altair Group Investment Limited, an existing loan note holder, is
prepared to support REACT throughout the examinership process and
together with a third party strategic investor have indicated that
they would be prepared to invest in REACT to facilitate a scheme of
arrangement for the restructured business.
REACT also announces that as part of the examinership process it
has issued a loan note to Altair Group Investment Limited
("Altair") for up to EUR 500,000. The proceeds of the loan note
will be used to fund the examinership process. The loan note is
repayable 14 business days after the end of the examinership period
and carries an annual interest rate of 9%. REACT has also signed a
Deed of Amendment and Confirmation with Altair the purpose of which
is to confirm that the security attaching to the one year GBP1.5
million 9% Secured Loan Note issued to Altair announced on 24 June
2014 comprising a first charge held by REACT in its project
operating and development companies, also attaches to further
monies advanced by Altair to REACT.
- Ends -
For further information:
+353 (0)21 2409
REACT Energy plc 056
Gerry Madden/Brendan Halpin
+44 (0)20 7408
Shore Capital - Nomad & Broker 4090
Pascal Keane / Anita Ghanekar
About REACT
REACT Energy plc is committed to operating clean electricity and
heat generation plants in the UK and Ireland.
The Company identifies, builds owns and operates plants and
possesses significant knowledge of energy markets, clean
technologies, fuel sources, project development, project finance
and project delivery.
REACT currently has four operational clean energy plants
generating revenue from the sale of electricity and heat.
The generation of clean electricity and heat from sustainable
sources has the potential to address the key energy challenges of
energy security and carbon commitment and provide strong returns on
capital employed.
The company is listed on AIM and trades as
REAC.www.reactenergyplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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