Business
Update on Default Notice
Update on Default Notice.
About this update from Capital Metals Plc
[{"type":"text","content":"\n \nRNS Number : 6235L Equatorial Palm Oil plc 14 August 2013 \n \n\n14 August 2013\n \nEQUATORIAL PALM OIL plc\n(\"EPO\" or the \"Company\")\n \nUpdate on EPO's default notice issued to Biopalm Energy Limited\n \nThe board of EPO (the \"Board\") announced on 8 July 2013 that it had issued a written notice (\"Notice of Breach\") 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 \nFollowing the Notice of Breach, the parties had 30 days using best endeavours to resolve the dispute by discussions with their respective Chairman. As the 30 day period has now expired, the Company can confirm that no such resolution of the dispute has taken place and that the next step for dispute resolution under the Investment Agreement is to seek resolution by arbitration in accordance with the Arbitration Rules of the Singapore International Arbitration Centre. \n \nIn the meantime, EPO 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 Biopalm under the Investment Agreement...