Anticipated Arbitration Award & Loan Extension

RNS Number : 1108W

Rurelec PLC

20 December 2013

 



20 December 2013

Rurelec PLC

("Rurelec" or "the Company")

            Anticipated Arbitration Award Date and Loan Extension

Rurelec PLC (AIM:RUR), the operator and developer of power generation capacity internationally, announces that it has been informed by the President of the Arbitration Tribunal considering Rurelec's claim for compensation for the nationalisation of its Bolivian assets that notification of the award is now anticipated to occur before the end of January 2014.

Rurelec also announces that it has agreed an extension to the $15.45 million loan to Birdsong Overseas Limited, announced on 2 July 2012, to take effect from 1 January 2014.  Amendments to the original terms include an additional 4% of interest payable at a new repayment date of 30 April 2014.

Rurelec is still expecting an imminent announcement of the date when its shares will commence trading on the Santiago Stock Exchange under the agreed dual listing.

Peter Earl comments:  "Shareholders should take note that the judgment for the Arbitration Claim will finally be made public in January 2014.  This is beyond the year end date which the Board of Rurelec had been expecting.  We have therefore extended our current loan and we are pleased that this loan extension has been agreed and executed ahead of the year end. 

"The three and a half year arbitration process has unfortunately taken longer and cost more than initially anticipated but we are pleased that a resolution is imminent. We have used the funds obtained under the Birdsong loan to move back into growth mode following the expropriation of our principal asset.  We have achieved success in replacing our lost generation capacity and we look forward to 2014 with renewed optimism."

For further information contact:

Rurelec PLC	Daniel Stewart	Xcap Securities
Peter Earl, CEO Ana Ribeiro, Head of Communications www.rurelec.com	Paul Shackleton	Guy Peters
[phone]	[phone]	[phone]
[phone]

 

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