As part of a 2013 deal that saw power plant operator Rurelec acquiring two gas turbines from contemporary Ipsa for £16.1-million, Rurelec has paid Ipsa’s primary creditor Ethos Energy €1-million of the outstanding balance due to it.

This came a little under a month after Latin America-focused Rurelec made a payment to Ethos Energy that brought the amount still owed to Ipsa under the deal to £2.91-million.

Ipsa said in a statement that Rurelec planned to pay a further €1.5-million before the end of September and the balance of some €355 000 by the end of October.

“The remaining balance of deferred consideration has been further reduced by sums advanced to Ipsa from Rurelec and amounts owed by Ipsa to Rurelec.

“Subject to Rurelec settling the amounts referred to above to Ethos Energy, the remaining balance due from Rurelec amounts to around £265 000 and is expected to be received before the end of October,” Ipsa held.

It added that the arrangements to pay the final €2.6-million owing directly from Ipsa to Ethos Energy, which was due by the end of September, were subject to discussion between the parties.

Ipsa, meanwhile, remained in discussion with Radix Investments regarding the extension or refinancing of a £500 000 loan, plus interest. 

“The company’s working capital is tight and being carefully managed . . . [and we] remain reliant on the receipt of the remaining funds owed by Rurelec and the forbearance of its principal creditors of Ethos Energy and Radix. 

“[We] will also need to raise further funds in the near term to meet the separate payment of €2.6-million due to Ethos Energy by September 30 and to meet remaining creditors and for additional working capital,” it stated.

As previously announced, Ipsa intended to sell its remaining balance of plant in relation to the previously sold turbines, as well as sell a minority interest in its operating subsidiary Newcastle Cogeneration.