LONDON (Thomson Financial) - Renova Energy plc said it seeking to reduce its
debt levels and raise capital through the sale of a controlling stake in its
U.S. business to AE Biofuels Inc.
Renova's U.S. subsidiaries filed for Chapter 11 in June.
Under the plan, AEB is proposing to raise up to $20 million of debt to
replace some of Renova Energy's debt owed to its banks and to provide additional
working capital.
In the event that AEB is unsuccessful in raising the funds to complete the
acquisition, AEB will convert some of the debt into 100 percent of the equity in
Renova's U.S. operating business and the balance of the outstanding debt would
be rescheduled.
The plan is subject to court approval and does not need to be approved by
shareholder, Renova said.
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