MPLE Maple Energy

TIDMMPLE

RNS Number : 4465A

Maple Energy plc

22 December 2014

MAPLE ENERGY PLC

("Maple" or the "Company")

Ethanol Business Update and Term Sheet with Senior Lenders

Further to the announcements made by the Company on 4 December 2014 and 8 December 2014 regarding the existing senior secured loans (the "Ethanol Loans") provided to Maple Etanol S.R.L and Maple Biocombustibles S.R.L (together, the "Ethanol Companies") by their senior lenders ("Senior Lenders"); the Company can now confirm that a term sheet ("Term Sheet"), which defines the steps and actions to be taken in order to repay the outstanding balance of the Ethanol Loans, was executed on 19 December 2014, details of which are set out below:

-- The Company has assumed a best efforts obligation to obtain all necessary approvals in order to enter into certain agreements with the Senior Lenders and take certain actions to facilitate the sale and or transfer of the Ethanol Companies and/or their assets to third parties. The fixed assets of the Ethanol Companies are now in the possession of the trustee acting on behalf of the Senior Lenders (the "Trustee"), pursuant to the trust agreements in force and effect with the Ethanol Companies. As a consequence, the Trustee is now in control of all the security interests granted by the Ethanol Companies to the Senior Lenders as collateral under the Ethanol Loans.

-- The Trustee has entered into an agreement with the Ethanol Companies under which the Ethanol Companies will provide administrative and management services to the ethanol business for a period of twelve months. The agreement can be terminated by the Senior Lenders at any time.

-- The Company will be entitled to receive a payment of up to US$1.1 million which is to be used to pay invoices related to cost and expenses incurred by Maple on maintenance and other related activities in the coming months.

-- Fondo de Inversión en Infrastructura, Servicios Públicos y Recursos Naturales ("ACC") a current shareholder of The Maple Companies, Limited, will be entitled to sell all its class A convertible shares and class B convertible preferred shares in The Maple Companies, Limited in exchange for the payment of US$ 750,000 which will be funded by the Senior Lenders.

-- Under the existing pledge agreement, the Senior Lenders have security over the entire issued share capital of Maple Gas Corporation del Perú S.R.L. ("Maple Gas") that, as a result of the default by the Ethanol Companies on the Ethanol Loans, they are entitled to enforce. Under the Term Sheet, the Company through its subsidiaries will grant an irrevocable mandate to the Senior Lenders for the sale of 100% of its equity interest (participaciones) in Maple Gas. The proceeds obtained will be applied in full to partially repay the Ethanol Loans. The Company will also amend the existing pledge agreement to increase the amount of such pledge to the Senior Lenders.

-- Certain agreements detailed in the Term Sheet will be subject to further board approval of the Company and its subsidiaries.

Trading in the Company's shares on AIM will remain suspended at this time.

A further update will be provided in due course.

For further information, please contact:

Maple Energy plc (+51 1 611 4000)

Guillermo Ferreyros Cannock, Chief Executive Officer, and Executive Director

Cenkos Securities plc (+44 131 220 6939)

Derrick Lee

Alan Stewart

This information is provided by RNS

The company news service from the London Stock Exchange

END

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