Update on Default Notice

RNS Number : 6235L

Equatorial Palm Oil plc

14 August 2013

 



14 August 2013

EQUATORIAL PALM OIL plc

("EPO" or the "Company")

Update on EPO's default notice issued to Biopalm Energy Limited

The 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").

Biopalm 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").

Following 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.

In 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.

EPO shall make further announcements regarding the above, and its continued discussions with Biopalm, in due course.

- Ends -

For further information, please visit www.epoil.co.uk or contact:

Equatorial Palm Oil plc Michael Frayne (Executive Chairman)	[phone]
Strand Hanson Limited (Nominated Adviser) James Harris	[phone]
Mirabaud Securities LLP (Broker) Peter Krens	[phone]

 

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