INDONESIA – Orpheus to raise funds

Orpheus Energy Limited intends to raise approximately Aua$1.12 million from a partially underwritten, non-renounceable pro rata entitlement issue. Under the rights offer, eligible shareholders may subscribe for one fully paid ordinary share in the company for every three ordinary shares held.

Orpheus has determined that it would be unreasonable to make offers under the rights offer to shareholders with a registered address outside of Australia or New Zealand having regard to the number of shareholders in such places, the number and value of the new shares they would be offered and the potentially substantial costs of complying with the legal and regulatory requirements in those jurisdictions.

Meanwhile, Orpheus has also recently announced an update on the recovery process for outstanding monies from Nugroho Suksmanto and the Mega Coal Group. The Orpheus Board on November 13 and 14 initiated action to expedite the recovery of the debt owed with the issuing of 17 notices to Mr Suksmanto and the Mega Coal Group for the payment of the debt.

A second round of notices to Mr Suksmanto was issued on November 25 and 26 with the third and final round of notices to be issued by December 8 unless the parties pay and settle the debt to Orpheus.

Under Indonesian legal practice, three such notices must be sent prior to commencement of any formal legal proceedings. In each of the notices, Orpheus has clearly indicated that unless the debt is paid, Orpheus will commence legal proceedings in Indonesia against Mr Suksmanto and/or the Mega Coal Group (both civil and criminal), including but not limited to filing: a petition for declaration of bankruptcy; a notice of arbitration and/or; a police report, in accordance with the prevailing laws and regulations.

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