Wasabi Energy Limited Approval of DOCA (6587Z)

TIDMWAS

RNS Number : 6587Z

Wasabi Energy Limited

10 February 2014

Wasabi Energy Limited (Administrator Appointed)

("Wasabi," "the Group" or "the Company")

10 February 2014

Approval of DOCA

Wasabi Energy Limited (Administrator Appointed) is pleased to advise that creditors have approved a proposal for a Deed of Company Arrangement (DOCA) to satisfy creditors and the initial recapitalisation of the Company.

The Creditors voted in favour of the following DOCA proposal:

-- The consolidation of the existing issued share capital on the approximate basis of 1 share (New share) for each 860 shares currently held;

-- The issue to all creditors, including the Secured Loan Note holders, of 2 New Shares for each $1 of debt owed to them;

-- Salida Accelerator Fund will be issued 2 New Shares for each $1 of debt owed to it, up to half of its outstanding amount (approximately $500,000). The remaining half of the Salida debt will remain in the Company as a secured debt owing by the Company with an extension of the maturity date.

-- A syndicate of lenders will provide $750,000 of secured funds to allow the Company to progress through the DOCA process. Mr John Byrne will participate in this syndicate and further disclosure of his participation will be made at the time of execution of the DOCA.

A notice of meeting and explanatory statement will be sent to shareholders shortly setting out the resolutions necessary to progress the consolidation of the issued shares and the debt for equity settlement under the DOCA. A further announcement will be made when the notice of meeting is published.

It is expected that the Company will execute the DOCA in the near future, and in any event within 15 business days. Final creditor numbers and number of New Shares to be issued will be determined once the formal proof of debt process has been completed.

The Company will provide a summary of the proposed new capital structure and an operations update at the time of executing the DOCA and will continue to explore funding options available to it.

ENDS

Contact

Administrators:

John Lindholm

Tel: + 61 3 9604 5106

Email: [e-mail]

Stewart McCallum

Tel: + 61 3 9604 5660

Email: [e-mail]

Wasabi:

John Byrne

Tel: [phone]

Media:

Michael Cave

Tel: + 61 3 9604 5101

Email: [e-mail]

ASX Code: WAS

http://www.wasabienergy.com/

U.K. Investor Enquiries

Beth McKiernan/ Ivonne Cantu / Neil McDonald

Cenkos Securities plc

Ph: [phone] / [phone]

This information is provided by RNS

The company news service from the London Stock Exchange

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