Orpheus becomes debt free after novation agreement

By Romel S. Gurky

ASX-listed Orpheus Energy said Monday after lengthy negotiations with its creditor PT Baraindo and also its debtor Nugroho Suksmanto, the company has executed a legally binding debt novation agreement.

The company said in a statement that under the terms of the agreement, Orpheus has paid PT Baraindo A$270,000 from the proceeds of the recent rights issue, and the A$792,100 balance of the debt owing to PT Baraindo has been assigned to Suksmanto.

This means the company now has no external debt. It correspondingly reduces the amount owed to Orpheus by Suksmanto to US$7.2 million (A$9.2m). However, as flagged in the company?s December quarterly report, none of these outstanding funds have yet been paid. Orpheus continues to take all necessary and appropriate action to collect the outstanding funds owed by Suksmanto.

Commenting on this major development, Executive Chairman Wayne Mitchell said,?This is an extremely important milestone for Orpheus as it leaves the company with no external debt and strengthens the company?s balance sheet. The company can now more aggressively look to rebuild as it continues its program to identify and inject appropriate new corporate opportunities for shareholders to consider?.

Orpheus will keep shareholders updated on new corporate opportunities and on the debt recovery process.

Editing by Reiner Simanjuntak