Update on Encha Payment
EFORA ENERGY LIMITED
(Formerly SacOil Holdings Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1993/000460/06)
Share Code: EEL
(“Efora” or “the Company”)
Update on Encha Payment
Shareholders are referred to the announcement released on SENS on 22 November 2019 wherein the Company provided an update on Encha Group Limited’s (“Encha”) indebtedness to the Company (collectively “the Parties”) pursuant to an arbitration appeal award of R75.0 million plus interest and costs (“Judgement Debt”). The Company obtained a court order on 27 July 2020 to make the arbitration appeal award an order of the court.
The Board, together with its advisors, evaluated the financial performance and position of Encha, took into account the current macro-economic realities and considered various alternative legal mechanisms to recover the Judgement Debt which remains outstanding, following which the Board concluded it would be in the best interest of all its stakeholders to reach a compromise with Encha. The Parties have therefore agreed on an amount of R85.75 million, which will be settled over a four year period. Under the terms of the compromise R5 million was paid and R750,000 relating to taxed costs will become due in 30 days. Thereafter, R20 million becomes due and payable on 30 June each year over a four year period.
Efora has reserved its rights to recover the full Judgement Debt in the event that Encha fails to pay any amounts under the compromise as they become due and payable.
Encha will be required to ensure that its auditors provide an audit certificate to Efora reflecting its net asset value by 30 April of each year, whilst any portion of the R85.75 million remains outstanding.
25 August 2020
For further information please contact:
Efora Energy Limited
+27 (0)10 591 2260
Efora Energy Limited is a South African based independent African oil and gas company, listed on the JSE. The Company has a diverse portfolio of assets spanning production in Egypt; exploration and appraisal in the Democratic Republic of Congo; midstream project relating to crude trading in Nigeria and material downstream distribution operations throughout Southern Africa. Our focus as a Group is on delivering energy for the African continent by using Africa’s own resources to meet the significant growth in demand expected over the next decade.
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