Monadelphous ends $11.5 million loan agreement

Company News

by Kathy Skantzos

Engineering group Monadelphous (ASX:MND) announced that a binding agreement entered into with Chinese waste management company Xiaoqing Environmental Protection Technology has been terminated.

Under the agreement, Xiaoqing intended to purchase $11.5 million of a convertible loan from recycling company AnaeCo.

Monadelphous said in an ASX statement that it gave the waste management company multiple extensions to fulfil the transaction but obligations under the agreement were not completed.

The engineering company intends to pursue Xiaoqing for damages resulting from non-performance of the agreement.

Monadelphous said while the loan provided to AneaCo has been fully provided for in its financial accounts, it will not have consequential impact on the overall earnings of the engineering company.

Shares in Monadelphous (ASX:MND) closed 2.02 per cent higher to $17.70.
 

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.