Anaergia offloads Italian biogas projects to lender

In Canada, Anaergia has entered into inter-related agreements with entities managed by Arjun Infrastructure Partners to immediately terminate its obligations relating to approximately C$145 million in loan obligations owing to Arjun, including with respect to a lender option to require purchase by the company of associated loans for the six Build-Own-Operate assets in Italy under conditions that include the failure to secure senior debt financing for particular projects by a certain date, in exchange for the sale of approximately C$55 million in inter-company loans (as previously written off by the Company) and the equity interests in a subsidiary of Anaergia that owns the Projects to Arjun. As a result of the transaction Anaergia will receive de minimis cash consideration.

The company has determined, as part of its previously announced strategic review, and consultation with professional advisors, that certain projects have immediate requirements of additional capital to reach operations beyond amounts available to the company under current lending facilities. As previously disclosed, the company did not have the ability to purchase the associated loans in the event the Lender Option was duly exercised by Arjun.

As a result of the transaction, Arjun has acquired full ownership and control of the projects which will provide it with the opportunity to fund the additional capital required for each project to reach commercial operations. Accordingly, the company has no further requirements to provide additional capital in respect of the Projects.