8th Dec 2015 09:50
LONDON (Alliance News) - DekelOil Public Ltd on Tuesday said it has agreed a deal with its joint venture partner on the Ayenouan palm oil project it operates in Ivory Coast to cuts DekelOil's debt by EUR5.1 million.
The company, which owns 51% of the Ayenouan palm oil project, reached the deal with Biopalm Energy Ltd to cancel a capital note totalling EUR5.1 million owed to Biopalm at the project level.
"The debt write off of EUR5.1 million is very positive news and unlocks significant value for shareholders. This follows the successful ramp up of operations at Ayenouan in 2015, which for the nine months to September 30 saw 29,137 tonnes of [crude palm oil] produced, more than double the total volumes achieved in 2014," Executive Director Lincoln Moore said in a statement.
Under the terms of the loan note, interest was payable by the project at 10% per annum and ranked above future dividends to ordinary shareholders. In exchange for the cancellation of the loan note, DekelOil has agreed to waive Biopalm's outstanding equity contribution of EUR1.1 million to the project.
Shares in DekelOil were up 10% at 1.27 pence on Tuesday morning.
By Samuel Agini; [email protected]; @samuelagini
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