Rurelec managing director Peter Earl has invested nearly £29,000 in the Latin American power plants developer and operator which is seeking compensation for the nationalisation of its Bolivian assets.
Earl has bought 250,000 shares at 11.5p each. These are all the shares he owns in Rurelec. Earl sold his stake of 33.4m Rurelec shares at 10p each back in June.
The latest investment is a small fraction of the £3.34m raised by that disposal. However some of these shares were owned by Independent Power Corporation, which is controlled by Earl. The disposal was part of a "family settlement agreement".
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Sterling Trust bought the shares and it owns 27.3% of Rurelec as well as holding £550,000 of convertible loan notes.
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Rurelec raised £425,000 at 10p a share during the summer in order to help finance the international arbitration process with the Bolivian government, which nationalised Rurelec's controlling stake in Guaracachi, the main power generator in Bolivia, back in May.
Rurelec believes that it should receive £47m in compensation. Bolivia promised fair compensation but six months later no progress has been made. A Notice of Arbitration is being served on Bolivia.
Rurelec's Argentinian subsidiary Energia del Sur should be in a position to refinance its borrowings in the near future. It will then be able to start repaying Rurelec's loans. Rurelec will require this additional cash, or at the very least the extension of its existing bank facilities, in order to have enough working capital for its medium-term requirements.
Top Director Buys
Rurelec (RUR) Director name: Mr Peter Richard Stephen EarlAmount purchased: 250,000 @ 11.50p Value: £28,750
Hill & Smith Holdings (HILS) Director name: Mr Clive SnowdonAmount purchased: 6,000 @ 231.50p Value: £13,890
