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AIM-listed Rurelec (RUR) has been little short of a disaster for the past few years, and more recently as the company has struggled to survive it has been hit by plenty of bad luck. I keep saying it, but I am amazed the company is still here at all. Last week things started to look rather better – or at least less terminal...
AIM-listed Rurelec (RUR) has again warned that cash is extremely tight and income isn’t flowing in from Argentina. Well, we’ve heard it all before so many times and yet the company continues to survive (so far) but eventually there may come a day when it cannot.
AIM-listed Rurelec (RUR) has released its audited FY17 numbers this morning. Once again we see losses (£5.8 million vs £9.3 million FY16) and the cash was down to just £163,000. We are told liquidity was a major issue for the Group in 2017 – you bet! We also see the auditor resigned – more on that below – and a previously unreported asset sale which leaves me rather puzzled. Finally, we are told there was no qualification of 2017 accounts which sounds great, but that was not quite all it seemed at first sight.
AIM-listed Rurelec (RUR) released what appears to be a mixed bag of news this morning, although on closer reading it looks all bad. The board has its work cut out once again as liquidity appears to be heavily constrained and there is limited certainty over further debt repayments. In other words, it is yet again running very close to the wire: will this latest crisis be enough to finish off the company?
AIM-listed Rurelec (RUR) has updated the market with regard to its dealings wth Energia del Sur in Argentina. In short, the cash ain’t flowing into Rurelec’s coffers.
Still no statement from AIM-listed Rurelec (RUR) with regard to the potential offer from a consortium led by former boss Peter Earl which may or may not involve IEH Limited. Or was it InterEnergy Holdings. But just as my last piece went out, we got this….
On 11 October AIM-listed Rurelec (RUR) put out an announcement regarding a possible offer led by former head honcho Peter Earl and involving a company which was named as IEH Limited which may or may fund the deal. Yesterday a company called InterEnergy Holdings said that it thinks it was the company referred to as IEH Limited, and that it has no intention of making as offer – and there is no comment at all from Rurelec.
Peter Earl, the former CEO of Rurelec (RUR), has come forward with a potential offer for the company. As bizarre development go, this is right up there with the best of them. Next up the re-appointment of Rob Terry to Watchstone (formerly Quindell)?
At 4.18pm on Friday AIM-listed Rurelec (RUR) issued an Update – Energia del Sur, S.A. Judging by the timing of the announcement (more-or-less no-one-is-watching o’clock) it wasn’t going to be good news.
AIM-listed Rurelec (RUR) updated the market last Thursday that its currently crocked power generation plant held in its JV Energia Del Sur in Argentina may get fixed rather sooner than first feared – even if the proposed repair sounds a bit of a Heath Robinson affair. Good news. The slightly more disconcerting news is that the Companies House website is showing an Auditor’s Resignation filing as being processed and available in five days.
Yesterday afternoon AIM-listed, cash-crisis-hit Rurelec (RUR) announced that storm damage had hit its 50%-owned outfit in Argentina, Energia del Sur, resulting in a fire in a power switch which looks to have knocked out its 136 MW CCGT power plant in Southern Patagonia. But the storm was on 31 March: why did it take until 12 April to ‘fess up?
Shares in AIM-listed Rurelec (RUR) sprang into life late yesterday after the company released news of a three-way deal which looks to have relieved at least some of the balance sheet pressure the company has been under of late. It is not out of the woods by any means, but shareholders have had two positive RNSs which suggest that all may not be lost.
Having inherited a train wreck from Peter Earl and his former colleagues in the AIM-listed Rurelec (RUR) boardroom, the current directors of the company have been living something of a hand-to-mouth existence surviving on scraps of short term finance while they try to rescue what has long appeared to be a basket case. But not satisfied with his fine work at the company (before departing in 2015), it seems Mr Earl has one last hurrah for his former shareholders. This morning the company announced receipt of Statutory Demands from AIM-executed IPSA (IPSA) and from Independent Power Corporation plc. Uh-oh.
Yesterday morning the Peter Earl trainwreck IPSA (IPSA) was booted off the AIM Casino having served its maximum time suspended pending financial clarification. In fact it had been suspended since September last year, once again making a mockery of AIM Rule 41. It has repeatedly warned shareholders that it could face a one-way trip to the corporate knackers’ yard and now, with no listing, one wonders whether administration now beckons – and whether this could be the beginning of the final chapter for fellow cash-strapped (and ex- of Peter Earl) Rurelec (RUR), itself recently restored to trading on AIM, for at the last count Rurelec owed IPSA £1.8 million.
The noose does appear to be tightening around AIM-listed Rurelec (RUR). It had appeared for a while that the board had managed to buy itself a little time with an extension to a previous short-term loan out to the summer of next year. But all the while the company has been clear that funding is tight. It comes as little surprise, then, that a bit of extra cash was needed but the terms (90-day maturity, 18% annualised interest) suggests that the company is more than a little distressed.
Blow me down! Having been suspended for failing to get its accounts out on time AIM-listed Rurelec has finally got its calendar FY15 numbers out. Fair play to the two-man board: with an ongoing cash-crisis as they try to rescue the company from its dire situation the workload must be extreme. With the numbers now out (after-hours, of course!) the shares are expected to resume trading on Monday. As to the report, it is dreadful – and the finger of blame is firmly pointing in the direction of the old guard under Peter Earl. It is a shocking read.
Well you can't say that you were not warned over and over again. This afternoon AIM-listed Rurelec - which has a few balance sheet issues - announced that its FY15 results will not be released by the end of this month (ie by Thursday this week) and so the shares have been suspended. Apparently they are pencilled in for release in a couple of weeks' time but there has to be a question of whether Rurelec shares will ever trade again.
We have known that the Peter Earl AIM-listed train-wreck Rurelec (RUR) has been in some financial difficulty for some time. Mr Earl departed the scene last June, but the fire-fighting for the new board has been on-going ever since. Last night at no-one-is-watching o’clock (4.55pm) the company gave an update on its funding arrangements and trading in what must be a classic case-study for all MBA students on how to deliver bad news. Over to the ShareProphets RNS Translation service for the low-down on last night’s announcement…..
Two weeks ago AIM-listed IPSA (IPSA) – a Peter Earle trainwreck – released its annual results to March 2015. The report contained an Adverse Opinion on Financial Statements issued by Auditor Grant Thornton which detailed two issues, one of which was the recoverability of £1.8 million from another Peter Earle trainwreck (although he has since departed that particular scene), AIM-listed Rurelec (RUR).
This morning AIM-listed Rurelec (RUR) which is rather fighting for its life announced that it has bought itself a little more time in the form of a new short-term secured (over all the assets of the company) loan of £850,000, which has already been fully drawn down. This will be repayable at the end of June and will repay the last short term secured loan from Radix (of £600,000), associated accrued interest as well as provide working capital.
It was announced yesterday at 11.32am that the CEO of AIM-listed Rurelec (RUR), Mr Mark Keegan, had walked with immediate effect. Having only been on the board since late July this year, and with the first RNS released which bore his name as CEO having been on 13 October this year this looks to be an ominous development - not to mention the well-chronicled tale of financial and other woes besetting the company.
That AIM-listed Rurelec (RUR) is in a tight spot has already been admitted by its (new) Board of Directors in the RNS announcing a proposed Open Offer to shareholders. We have already pointed out that the Offer seemed to be doomed from the outset as the minimum funding level set looked impossible to achieve, given that the company's 54% major shareholder (Sterling Trust) was itself in administration. But we didn't have to wait for that to play out, for yesterday it was announced that shareholders had rejected all the resolutions put to an EGM called to approve measures needed to progress the attempted Open Offer. The Offer is a dead duck.
AIM-listed and cash-strapped Rurelec (RUR) has proposed an Open Offer as the new management team fights to keep the lights on. But I fear that this potential fund-raising is already doomed to failure. The company admits that it faces a cash-crisis and the writing is on the wall. Here is why.
Crisis ridden AIM-listed Rurelec confirmed on Friday that it had closed the short-term loan facility announced on 30 October, and that it had already drawn down the full amount of £600,000. The statement released says that the directors are pleased to announce this news. For “pleased” read “relieved”. But at what price?
Today trading in AIM-listed Rurelec (RUR) went bananas. Readers following the fortunes of this disaster story will know that cash has been something of an issue - see HERE and HERE. So any positive developments regarding funding would be very warmly welcomed as the company tried to avoid what appeared to be an inevitable train smash. Well, some good news arrived on that score this afternoon at 3.38pm as the company announced that it is at an advanced stage of negotiations over a short term finance deal. Great stuff, and top marks to the board of directors for making a fight of it. But by 3.38pm the shares had already gone through the roof. Who knew? Who bought before 3.38pm?
I have been bearish on AIM-listed Rurelec (RUR) all the way down from 3.75p in May. With the shares now down 79% since then, at 0.775p, I sense a notch on the bed-post at Deputy Sheriff of AIM Towers. Rurelec’s 54% controlling shareholder, Sterling Trust, has gone into administration and so we now have (to add to the balance sheet issues) a monster of a stock overhang. Also in the fray is the already suspended AIM-listed IPSA (IPSA), which sees a 30% stock overhang created.
This morning two boardroom departures have been announced at AIM-listed Rurelec (RUR). The chairman was announced to have gone first thing this morning, and now he has been followed by a NED who is departing as of the end of the month. Is this a sign of further woes to come?
That AIM-listed Rurelec (RUR) has been in a spot of bother was already well known (see HERE and HERE), and the full extent of the fiasco is clear from yesterday’s Interims. But it is the Chairman’s statement which most raises the eyebrows – here we are given an explanation as to what went on at the AGM when the board members up for re-election were unceremoniously rejected by the major shareholder…..whose head honcho is the company chairman!
I have already pointed to some uncertainty over the control of Rurelec (RUR) HERE as well as some financing issues HERE, after bridging finance of $12million appeared to have fallen through last week, although a long-awaited sale brought in $6.4million. Monday saw RNSs which showed that Rurelec has not one, but two debts currently causing sleepless nights. It does not look good, and the appointment of two Exec Directors seemingly at the insistence of one of the creditors is ominous.
First up, news Friday that Rurelec (RUR) has finally sold its Canchayllo hydro-electric plant in Peru for net proceeds of $6.4m. This announcement comes after the previously announced sale for $6.5m back in March, an update in April that the $6.6m cash had not arrived but was expected “shortly” and an update in May that a loan which had been expected to have been settled out of that cash had been extended, before the Annual Report and Accounts for FY14 revealed deep in the notes that the sale had failed.
Yesterday morning, hot on the heels of a cataclysmic AGM (see HERE) which saw all resolutions (apart from the reappointment of the auditors) overwhelmingly defeated (with 90-odd % votes against), Rurelec (RUR) announced that a previously announced short-term loan of $12million has been suspended pending clarification with the lender on the security and repayment of the facility, if drawn. The company goes on to reassure that there are other alternative sources of finance on which a further announcement will be made in due course. In other words that deal is off.
Boy, oh boy - an after-hours RNS from Rurelec. Last time we had one the Red Flag count hit twelve (see HERE). But it got worse when Rurelec dished up five RNSs in a single day (see HERE) which included FY14 results, but buried deep in the notes to the accounts it emerged that a previously announced sale of assets intended to fund the repayment on loans had, in fact, not taken place. Yesterday, on the dot of the end of the day’s trading, the company released a stunning AGM result.
I was intrigued with the latest article on Shareprophets regarding Rurelec (RUR), from a fundamental perspective. The rationale behind the technical lowdown here is whether we can demystify the prospects for shares of this company.
Friday saw a barrage of RNSs from Rurelec (RUR) – five in all. 2014 results were not a pretty sight, with the main event having been the compensation the company finally received after Bolivia nationalised some of its assets. I’ll spare you the details other than to say that the final figure received - $31.5m - was rather less than total of $41m awarded by the Permanent Court of Arbitration, which was itself a massive haircut for the company. Having covered a previous RNS from May which was splattered from top to bottom with Red Flags, it comes as little surprise that Friday’s news was hardly awe-inspiring, with the shares closing off by 11% .
It is always worth a gander through the after-hours RNSs to see what is being slipped out when no-one is looking. It is a common way for companies – especially those on the AIM Cesspit – to try to hide bad news from their shareholders. It simply doesn’t work, so why they bother is beyond me. But it is an immediate Red Flag. And that brings me to Rurelec plc (RUR). On Tuesday at 4.30pm – bang on market closing time - it released an RNS entitled ‘Extension of Radix Facility Agreement’. Gosh what an exciting life I lead: I just had to take a look…
I have been banging on about Rurelec Resources (RUR) since January 2012. This is a company that has a Net Asset Value of 20p a share, plus anything it gets from a tribunal hearing at the Permanent Court of Arbitration (the PCA).
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