Thursday 19 September 2019

Providence again extends deadline to receive Chinese funds

Tony O’Reilly Jr of Providence
Tony O’Reilly Jr of Providence
Ellie Donnelly

Ellie Donnelly

Irish oil and gas explorer Providence Resources has again extended the deadline to receive funds from its Chinese backer APEC.

This is the tenth time the loan advance has been delayed.

Providence and its associates – collective known as the Barryroe Partners – said today it had "received assurances" that the $9m in funding is in the process of being paid.

On the back of this, the Barryroe Partners have agreed to a backstop extension of on or before September 2.

In the event that the loan advance is not received from APEC by the revised backstop extension, Providence said it would need to put in place "alternative financing arrangements" to provide it with sufficient working capital beyond the end of the third week of September.

Earlier this month the company made a bulk of its staff redundant as part of measures to cut costs.

Employees that have been made redundant are no longer reporting to work.

However, redundancy packages with the impacted staff will not be implemented until the funding from China’s APEC or "alternative finances" have been received.

"Subject to the receipt of the loan advance or alternative financing arrangements being put in place, final settlement agreements agreed between the company and the staff will be signed and the redundancies will be implemented," Providence said in a statement last week.

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