React Energy PLC Update: Newry project and winding up of KFL (5968R)

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RNS Number : 5968R

React Energy PLC

12 September 2014

 
12 September 2014 
 

REACT Energy plc

("REACT" or the "Company")

Update on Newry Biomass project and winding up of Kedco Fabrication

REACT Energy plc (AIM: REAC), the energy infrastructure developer and operator which focuses on the production of clean energy in the UK and Ireland today announces that further to the announcement dated 24(th) June 2014 the directors of Newry Biomass Limited ("NBL") have advised Kedco Fabrication Limited ("KFL" a subsidiary of REACT Energy plc) that KFL does not have a future role as Engineer, Procure and Construct ("EPC") provider for the Newry Biomass project.

NBL is in the final stages of negotiations with an alternative technology provider regarding the provision of a full technology solution for the Newry Biomass project under an EPC contract. It is expected that this alternative provider will take full responsibility for the construction, commissioning and operation of the project and the role of KFL is no longer required. Further updates will be provided in due course.

REACT has subsequently been informed by the directors of KFL that it is the intention of this company to hold creditor meetings on 29 September 2014 to seek liquidation of the company. The directors of KFL are Gerry Madden and Brendan Halpin who are also directors of REACT.

The total amount of net debt owed by KFL to creditors is GBP1.5 million of which GBP1.4 million is owed to REACT.

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For further information:

 
                                              [phone] 
REACT Energy plc                               9104 
Gerry Madden, CEO 
 Brendan Halpin, Finance Director 
                                              [phone] 
Shore Capital - Nomad & Broker                 4090 
Pascal Keane / Anita Ghanekar 
                                              [phone] 
Yellow Jersey PR Limited - Public Relations    221 
Dominic Barretto / Anna Legge 
 

About REACT

REACT Energy plc is committed to operating clean electricity and heat generation plants in the UK and Ireland.

The Company identifies, builds owns and operates plants and possesses significant knowledge of energy markets, clean technologies, fuel sources, project development, project finance and project delivery.

REACT currently has four operational clean energy plants generating revenue from the sale of electricity and heat.

The generation of clean electricity and heat from sustainable sources has the potential to address the key energy challenges of energy security and carbon commitment and provide strong returns on capital employed.

The company is listed on AIM and trades as REAC.www.reactenergyplc.com

This information is provided by RNS

The company news service from the London Stock Exchange

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