Ncondezi buys more time for the restructuring of its shareholder loan

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Ncondezi Energy Ltd (LON:NCCL) has said that certain members of its board and management of who represent 39.6% of the outstanding shareholder loan have signed a binding undertaking not to call in the loan before the later of November 30, 2022, or when the group’s ongoing restructuring is completed.

The undertaking prevents the loan from being called in, as a majority agreement representing 66.67% of loan holders is required, and enables the company to focus on delivering key milestones at its flagship 300MW Ncondezi project in Mozambique, the group added.

Ncondezi chairman Michael Haworth, and its chief executive Hanno Pengilly were signatories to the undertaking.

The loan matured on November 30, 2019, and has since been undergoing a restructuring negotiation with loan holders, during which time Ncondezi received “in principle” support from all lenders for the restructuring in May 2020.

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