12th Sep 2014 16:29
LONDON (Alliance News) - REACT Energy PLC Friday said that Newry Biomass Ltd has told Kedco Fabrication Ltd, a subsidiary of REACT, that it does not have a future role as engineer, procure and construct (EPC) provider for the Newry Biomass project.
"Newry Biomass is in the final stages of negotiations with an alternative technology provider regarding the provision of a full technology solution for the Newry Biomass project under an EPC contract," REACT said in a statement.
"It is expected that this alternative provider will take full responsibility for the construction, commissioning and operation of the project and the role of KFL is no longer required," REACT added.
REACT said it has since been informed by the directors of Kedco Fabrication that it is the intention of this company to hold creditor meetings on September 29 to seek liquidation of the company.
The directors of Kedco Fabrication are Gerry Madden and Brendan Halpin, who are also directors of REACT.
Kedco Fabrication owes GBP1.5 million of net debt to its creditors, of which GBP1.4 million is owed to REACT.
REACT Energy shares Friday closed up 12% at 14.50 pence.
By Samuel Agini; [email protected]; @samuelagini
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