News blog
IPSA Group
- BY: Andrew Hore |
- POSTED: 23/02/2011 |
South Africa-focused power generation projects developer IPSA Group says that it has signed a gas supply agreement with Spring Lights Gas.
The contract is for IPSA’s subsidiary Newcastle Cogeneration (NewCogen), which has to give notice of commencement of supply within 60 days. Once the plant is fully up and running it will generate much needed cash for IPSA.
Sasol Gas had agreed to supply gas to NewCogen but the agreement was terminated in August 2009. Sasol claims that it is owed £4m under ‘take or pay’ penalties that came about because there were delays in the plant negotiating a power purchase agreement. Last August, Eskom agreed to purchase the power.
IPSA is trying to sell four Siemens Westinghouse 701 DU gas turbines in order to raise cash to reduce its borrowings and pay other creditors. Indicative offers are under consideration.
The repayment date of £655,000 of loan notes has been extended until 30 April.
At 8.12p a share, IPSA is valued at £7.72m.
Download the February edition of AIM Journal at http://www.hubinvest.com/AIMPDFFebruary2011_17.pdf
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