12th Mar 2020 14:36
(Alliance News) - Star Phoenix Group Ltd said Thursday that it has received GBP500,000 from Chinese firm LandOcean Energy Services Co Ltd as part-payment for Range Resources Trinidad Ltd.
In November, Star Phoenix - previously known as Range Resources - announced the sale of Range Resources Trinidad to LandOcean. Under the sale agreement, LandOcean is required to pay USD2.5 million to Star Phoenix in tranches.
However, in February the oilfield services firm said it expects a delay in receiving a scheduled payment due to outbreak of coronavirus. It agreed to extend the payment date on a rolling basis, subject to late fees of 8% per annum, calculated daily from February 12 until the date the payment is received.
On Thursday, Star Phoenix said it has received GBP500,000 from LandOcean, adding that the remaining USD500,000 plus late fees are expected to be paid by the end of March.
The total amount paid to Star Phoenix by LandOcean to date, in relation to the sale is USD1 million.
The company and LandOcean are continuing to progress with completion of the sale and debt restructure and are committed to closing the transaction as soon as practicable, Star Phoenix said, adding that the final USD1 million will be paid within five business days of the completion date.
Star Phoenix shares were trading 12% higher at 1.40 pence each on Thursday afternoon in London.
By Ife Taiwo; [email protected]
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