Renewable Power and Light is going to court in the US to sue Safari, which has found itself unable to supply palm oil at a price agreed about two years ago.
On 11 July 2007, RPL engaged corporate litigation lawyers, Willkie, Farr & Gallagher LLP, and commenced legal action in the State of New York by filing a complaint against Safari, two related entities and one of Safari’s directors for breach of contract and fraudulent misrepresentation. In addition, on 11 July 2007 RPL successfully obtained a temporary restraining order preventing any of the defendants from transferring any palm oil to anyone else.
RPL’s shares were suspended and have resumed trading, but the price fell from over £1 to about £0.50 between 7 July and 12 July. The firm stresses in its statement that it has reserves, has sold electricity and steam profitably and is looking for new sources of biofuel.
You can see all of the Renewable Light and Power’s regulatory statements here.