The conditional sale represents a recovery of approximately 67% of the remaining unrepaid and outstanding receivables of US$26.85 million.
Back in 2019, Geo Energy made total collective payments of US$35 million under certain commercial agreements, including for coal purchases in Indonesia. These agreements were terminated due to certain conditions being unfulfilled by counterparties, according to the release.
At present, the full provisions on these outstanding balances and its accrued interests have been made by the group as at Dec 31, 2022.
Geo Energy’s executive chairman and CEO Charles Antonny Melati says: “Over the past few years, our team has been working diligently in the recovery of these outstanding balances by undertaking various initiatives and exploring other endeavours.”
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He expects the US$18 million in cash proceeds to provide “financial certainty” in the group’s cash flow.
As at 10.24am, shares in Geo Energy are trading flat at 30.5 cents.
