30th Jul 2015 11:35
LONDON (Alliance News) - IPSA Group PLC Thursday said Rurelec PLC is now able to pay the long-overdue funds needed to move forward, leading to IPSA reshuffling its board.
IPSA has been waiting for a GBP2.91 million deferred payment from Rurelec for the sale of its Westinghouse Siemens gas turbines to Rurelec.
On Thursday, IPSA said Acting Chiuef Executive Peter Earl and Finance Director Elizabeth Shaw have both handed there resignations in, leaving current Chief Operating Officer Mark Otto at the helm of the company on an interim basis.
"The resignations follow discussions with Rurelec PLC, which is now in funds to pay part of the monies owed by it to IPSA and in particular make payment on IPSA's behalf of the initial amount now due to Ethos Energy of EUR2.85 million by August 31, 2015," said IPSA in a statement.
On top of the EUR2.85 million owed to Ethos, IPSA needs to make a further EUR2.85 million payment to Ethos before the end of September.
IPSA also owes a GBP500,000 loan to Radix FCZ, which the company has previously said would not be paid until the funds from Rurelec had been received.
On Thursday, IPSA it is in discussion with Radix about either extending or refinancing the loan and the interest owed under that loan.
Rurelec has also agreed to pay a further GBP300,000 to IPSA in the near term, with the remaining GBP585,000 to be paid in the longer term.
IPSA shares were down 5.2% to 1.61 pence per share on Thursday whilst Rurelec shares were up 4.6% to 1.70 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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