News blog
Renova Energy
- BY: Andrew Hore |
- POSTED: 20/05/2008 |
Renova Energy has asked for its shares to be suspended.
The ethanol producer and distributor is still talking with its lenders in order to obtain the finance to complete the Heyburn project but the standstill agreement has ended. That means that bank borrowings are repayable on demand. The shares were suspended at 3.125p.
Management points out that the original ethanol marketing, distribution and production business continue to trade.
The Heyburn project ran into trouble at the end of last year. The shares were briefly suspended over Christmas and New Year. That was when Renova originally breached its banking covenants and that is why it subsequently entered a standstill agreement with its banks.
Renova isn’t in a strong position and, at best, existing shareholders will be heavily diluted by any fundraising.
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