|Thursday, 6 December 2001|
Embattled power company Energy Equity Corporation is pinning its hopes on a "mini-LNG" program to help it ease its heavy debt burden.
EEC chairman, Mr Ron Punch, told shareholders the company would use technology developed at its Alice Springs plant to produce small and medium-size power plants throughout Asia.
However, optimistic plans for the future failed to deflect questions about the company's current state of affairs. EEC posted a $29 million loss for the financial year, up from $12 million the previous year. At the company's annual general meeting, board members drew the ire of irate shareholders angry at past management decisions.
The power company has convinced the Commonwealth Bank to renegotiate its $115 million debt repayment schedule and the company had reduced its debt to $89 million through a convertible note issue and refinancing of the Alice Springs plant.
As for angry shareholders: "We believe we have a way forward and if people don't like the story then don't remain shareholders," Mr Punch said.
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