Ram Power continues work on strategic alternatives

Ram Power continues work on strategic alternatives Plant in San Jacinto Tizate, Nicaragua (source: PowerEngineers)
Alexander Richter 2 Jan 2015

Ram Power Corp. continues work on evaluating strategic alternatives according to new company update and announces proposals of several third parties.

In a release on December 31, 2014 – Ram Power, Corp. announced an update on its strategic process and corporate activities.

As previously disclosed, the Board of Directors of the Company formed a Mergers and Acquisitions Committee to explore and evaluate strategic alternatives to enhance shareholder value. The Committee was tasked with exploring, among other things, opportunities to increase operational efficiencies, strategic partnerships, asset sale opportunities and asset purchase opportunities. The Company has received a number of proposals from interested third parties and continues to work with its stakeholders and potential investors to bring a transaction to conclusion.

December debenture payment

Pursuant to the terms of the debenture indenture between Ram Power and Equity Financial Trust Company, beneficial holders of 66 2/3% of the currently outstanding principal amount of the debentures have authorized the addition of Cdn$2,161,338  to the principal amount of the outstanding debentures in lieu of making a semi-annual interest payment on the debentures.  As a result, the Debenture Interest Payment Amount shall accrue interest as principal for the remaining term of the debentures and shall be due and payable on the maturity date or as otherwise provided under the debenture indenture. The Company is working with the relevant beneficial holders to receive formally signed resolutions from the registered holders of debentures to reflect the instructions of such beneficial holders.

Phase I and Phase II subordinated debt facilities

The Company has also not made the aggregate US$1,277,774 principal and interest payments required to be made on September 15 and December 15, 2014 in respect of its Phase I and Phase II subordinated debt facilities.  As the Company has previously disclosed, we continue to work alongside our Phase I and Phase II Senior and Subordinated Lenders, and both parties are interested in bringing to close a transaction in early 2015.  As a result of the fact that the subordinated debt payments were not made, the amounts outstanding under these agreements have been classified by the Company as short-term liabilities.

Source: Company Release