Business
Default notice issued to Biopalm Energy Limited
Default notice issued to Biopalm Energy Limited.
About this update from Capital Metals Plc
[{"type":"text","content":"\n \nRNS Number : 8059I Equatorial Palm Oil plc 08 July 2013 \n \n\n8 July 2013\n \nEQUATORIAL PALM OIL plc\n(\"EPO\" or the \"Company\")\n \nEPO issues default notice to Biopalm Energy Limited\n \nThe board of EPO (the \"Board\") announces that it has today issued a written notice to its joint venture partner, Biopalm Energy Limited (\"Biopalm\") (a wholly owned subsidiary of Indian conglomerate, the Siva Group) setting out that Biopalm is in material breach of its obligations under the investment agreement signed between the parties on 10 December 2010 (the \"Investment Agreement\"). \n \nBiopalm is required under the Investment Agreement to arrange and/or contribute, either directly or through any member of its group, any external funding required by the joint venture company, Liberian Palm Developments Limited (\"LPD\") (up to a maximum of US$30,000,000) (the \"Commitment\"). \n \nNotwithstanding Biopalm's obligations to fund LPD up to the Commitment amount, EPO intends to continue to fund LPD and its assets in the Republic of Liberia. EPO has, however, advised Biopalm that any dilution of shareholding that results from raising equity in EPO, due to Biopalm's failure to honour its Commitment, should, in EPO's view, result in a corresponding increase in EPO's share in LPD, which is, at present, held 50/50 by EPO and Biopalm as well as an award for damages for loss due to Biopalm's failure to honour its commitments under the Investment Agreement.\n \nEPO continues to negotiate and work with Biopalm regarding the Commitment with a view to an amicable solution being reached, but has reserved all rights to take action against Bi...