Information  X 
Enter a valid email address

Arko Energy Hldg PLC (YGH)

  Print      Mail a friend

Monday 30 June, 2003

Arko Energy Hldg PLC

Final Results Clarification

Arko Energy Holdings PLC
30 June 2003

                            Arko Energy Holdings plc

                                (the 'Company')



CLARIFICATION PRESS RELEASE YEAR RESULTS 2002



The board of directors of the Company (the 'Board') refers to the Company's 
announcement of 2002 annual results dated 26 June 2003 and wish to clarify the 
following content appeared in the Announcement.

Reference is made to page 36 and 73 under Note 12 'Tangible Fixed Assets' 
regarding to the pledge of plant and machinery and other equipment with a 
carrying value of £11,063,812 to secure bank loan of Changzhou Power Development 
Company Limited ('CZPD'), an indirect subsidiary of the Company, amounting to 
£1,309,317. In view of the limited accounting records left behind by China Chang 
Jiang Energy Corporation ('CCJEC') as mentioned in the acquisition document, a 
more detail explanation on above note will give a better understanding of issue 
to the readers.

In late 90s', China Chang Jiang Energy Corporation ('CCJEC') seized the control 
and operation of CZPD. China International Economic and Trade Arbitration 
Commission finally judged that the action of CCJEC was illegal. During the 
period of illegal control of CZDP by CCJEC, it made use of deceptive or false 
documents to obtain loan financing from a local bank amounting to RMB16,000,000. 
However, the loan amount was subsequently transferred to CCJEC instead of 
financing the operation of GZDP. As CCJEC retained all the accounting records 
after it ceased the illegal control of CZDP, the recording of bank loan balance 
of RMB15,810,000 in the financial statements was only based on the limited 
available information.

As per the latest investigation result, both the pledge of assets and bank loan
are invalid. CZDP is now taking all necessary legal actions to recover all
previous payment in relation to the bank loan.


The above does not affect reported result.
We apologize for any confusion or inconvenience.


                              By Order of the Board
                             CHUNG Pan Hong, Terence
                                Company Secretary


                      This information is provided by RNS
            The company news service from the London Stock Exchange               LGFZM