– CANADA, Toronto / RDC, Kinshasa – Feronia Inc. (TSX: FRN) today announced that current non-executive director Larry Seruma has been appointed as Executive Chairman.
The company also announced the appointment to its Board of Paul Wythe as a non-executive director and Chairman of the Audit Committee, and Kamal Pallan as a further non-executive director nominee of KKM.
David White, a current non-executive director and Chairman of the Audit Committee has resigned as did David Osborne and Mr. Andrew Brown.
The appointments of Messrs. Wythe and Pallan are subject to the approval of the TSX Venture Exchange.
Larry Seruma, Executive Chairman of Feronia Inc. commented: “Depressed market prices, extremely challenging operating conditions and delays in the execution of capital projects mean that a great deal of work is required to ensure the survival of the business.
“In the longer term, it is vital that we reduce the cost of production and the completion of capital projects, such as the construction of the Lokumete mill, are essential to achieve this. However, as the Company cannot meet its debt repayment requirements or remedy the current debt-related defaults, a great deal of work and compromise will be required to restructure the Company’s debts, or find an alternative solution, in order to ensure there is a “longer-term”.
“As such, we are in discussions with the Company’s secured debt holders to find a way forward and have entered into a support agreement with the Company’s two largest shareholders to facilitate the Group’s restructuring. Additional debt financing from one of the Company’s principal shareholders, of which $5 million has already been funded, is in place to help fund the Company whilst the restructuring process takes place and we are working hard to find a way forward.
“Plantations et Huileries du Congo is one of the largest private-sector employers in the Democratic Republic of the Congo and has played a vital role as an employer and provider of palm oil for more than 100 years. Through the combined efforts and desire of all of its financial stakeholders, we hope this will continue long into the future.”
For more information: https://www.feronia.com
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