Variation to Terms of £2.5m C

RNS Number : 0413R

Rurelec PLC

13 August 2010

 



Rurelec PLC

("Rurelec" or the "Company")

Variation to Terms of £2.5 million Convertible Loan Notes

Rurelec PLC (AIM:RUR), the power plant developer and owner-operator of power generation assets in Latin America, announces that it has secured agreement from the holders of the £2.5 million of the unsecured 12 per cent convertible loan notes for an amendment to the original issue terms which assists in the current refinancing of its Argentine power generation business, Energia del Sur S.A. ("EdS").

The new Loan Note Instrument amended by a deed of variation has changed the price at which note holders may convert from 25 pence per ordinary share to 13.75 pence per ordinary share and also allows interest to be rolled up and paid at the repayment date, being 31 March 2011.  These changes are expected to assist in the refinancing of EdS.

Rurelec continues to be in negotiation with the Government of Bolivia for an agreed settlement to expropriation claims following the nationalisation of Rurelec's Guaracachi power generation business.

Speaking today, Peter Earl, Rurelec CEO, said: "I am delighted that holders of the convertible loan notes have given their support to the Company's refinancing plans.  We expect to make a further announcement on progress in due course."

 Enquiries:

Peter Earl

Managing Director                                             Tel: [phone]

Paul Shackleton

Daniel Stewart & Company Plc                            Tel: [phone]

 

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