Providence exploring options as it further extends funding deadline
Providence Resources said it is “actively exploring” alternative financing arrangements in order to provide it with sufficient working capital beyond the end of the month in the event that funding from Chinese backer APEC is not received.
The Irish oil and exploration group said that as at close of business yesterday, no funds had been received in the company’s account from APEC in what is the latest in a series of delays in receiving the loan advance.
Providence has now extended the backstop to receive the $9m in funding to September 9.
The company, headed by Tony O’Reilly Jr, added that it has also issued a written notice to APEC that, should the loan not be received by September 9, Providence reserves the right to end contract exclusivity, while also considering all legal remedies available to it against APEC for contract non-performance.
Last month Providence announced job cuts and other immediate cost-saving measures to address a cash crisis, with no sign of promised finance arriving from China.