Tel: +44 (0)20 7793 5615, Fax: +44 (0)20 7793 7654, email: info@ipsagroup.co.uk
IPSA Group PLC, Registered in England No: 5496202
Registered Office: as above
News & Publications
Completion of Sale of Turbines
Press Releases
Published: Thursday, 12 January 2012 12:36
12 January 2012
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 US$31 million being the balance of the US$35 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 £22.6m, leaving approximately £15.5m 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 US$31m. 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:
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Phil Metcalf, CEO, IPSA Group PLC |
+44 (0)20 7793 5600
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John Llewellyn-Lloyd / Harry Stockdale, Execution Noble & Company Ltd |
+44 (0)20 7456 9191
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Riaan van Heerden, PSG Capital (Pty) Ltd |
+27 (0)21 887 9602 |
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Harry Ansell / James Joyce W H Ireland Ltd |
+44 (0)20 7220 1666 |