Orpheus Energy advises that, after lengthy negotiations with its creditor PT Baraindo and its debtor Nugroho Suksmanto, the company has executed a legally binding debt novation agreement. The company is now debt-free and able to pursue other corporate opportunities.
Under the terms of the agreement, Orpheus has paid PT Baraindo about Aus$270,000 from the proceeds of the recent Rights Issue, and the approximate Aus$792,100 balance of the debt owing to PT Baraindo has been assigned to Mr Suksmanto.
This means Orpheus now has no external debt and this correspondingly reduces the amount owed to Orpheus by Mr Suksmanto to about Aus$9.2 million.
However, as flagged in the company’s December Quarterly Report, none of these outstanding funds have yet been paid. Orpheus continues to take all necessary and appropriate action to collect the outstanding funds owed by Mr Suksmanto.
Commenting on this major development, Orpheus’ executive chairman Wayne Mitchell said: “This is an extremely important milestone for Orpheus as it leaves the company with no external debt and strengthens the company’s balance sheet. The company can now more aggressively look to rebuild as it continues its program to identify and inject appropriate new corporate opportunities for shareholders to consider.”