Geo Energy to recover US$18 million in outstanding receivables after sale of creditor’s rights

INDONESIAN coal producer Geo Energy Resources on Monday (Jun 24) said it agreed to sell certain creditors’ rights to funds managed by OCP Asia (Singapore) for US$18 million in cash proceeds.

The creditors’ rights relate to outstanding receivables from Indonesian companies Titan Infra Energy and Jaya Utama Indonesia, which amount to about US$26.9 million. Geo Energy made full provisions for these balances and accrued interest as at Dec 31, 2022.

The conditional sale of the creditors’ rights will help recover 67 per cent of this amount and provide financial certainty, the group said, adding that this will be accretive to its cash flow.

The group’s chairman and chief executive officer Charles Melati said: “In addition, with full provisions having been made for these balances, there will be a positive impact to our financial performance in FY2024 through a gain on reversal of provision.”

Shares of mainboard-listed Geo Energy closed on Friday S$0.005 or 1.7 per cent higher at S$0.305.