RNS Number : 2590U
Renova Energy plc
13 May 2008
For immediate release
13 May 2008
Renova Energy plc ("the Company")
Directorate changes and Financing Update
Renova Energy plc (RVA: AIM), the ethanol production, distribution and marketing company, today announces the resignation with immediate
effect of Edward Murray and Steve Graybill as non-executive directors of the Company.
Financing update
As previously announced the Group is in ongoing discussions with its Lenders and the creditors of Renova Energy (ID) LLC, the Heyburn
project company, regarding a restructuring of its bank borrowings and other liabilities. Provided agreement can be reached with the
Lenders, it is likely that any restructured bank debt will include the right to convert a significant amount of the bank debt into equity.Such conversion right, which would be subject to shareholder approval prior to its grant, is likely to be very dilutive to existing
shareholders if subsequently exercised. In the absence of any agreement with the Lenders, the Company would continue to be in default of
its banking arrangements and, in particular, the Standstill Agreement that expires on 19 May 2008 and all amounts due to the Lenders would
be repayable on demand.
In the meantime, the Company is continuing to explore other financing and strategic options.
Commenting on this, Chris Thomas, Chairman, said:
"In view of the financial position of the Company, Ed and Steve independently came to the conclusion that they were unable to continue
to add value to the Company in their positions as non-executive directors. Both of their three year terms of appointment expired on 9 May
2008 and, by mutual agreement with the Company, these appointments have not been extended. I would like to thank Ed and Steve for their
contribution and commitment to the Company over the last three years. The Company will keep the constitution of the Board under review
pending the outcome of the financial restructuring."
For further information please contact
Renova Energy
Chris Thomas, Chairman +44 207 299 4444
Fanton Chuck, Chief Executive Officer +44 207 299 4444
Raf Alam, Finance Director +44 207 299 4444
Brewin Dolphin
Ken Fleming, Director +44 141 221 7733
Buchanan Communications
Ben Willey +44 207 466 5000
or visit www.renovaenergy.com
This information is provided by RNS
The company news service from the London Stock Exchange
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