Anaergia turns over Italian projects to Arjun

Anaergia Inc. has entered into agreements with entities managed by Arjun Infrastructure Partners, London, to immediately terminate its obligations relating to approximately $145 million in loan obligations owed to Arjun.

Burlington, Canada-based Anaergia is turning over ownership of six build-own-operate assets in Italy to Arjun subsidiaries in exchange for terminating loan obligations totaling $145 million owed to Arjun.

As a result of the transaction, Anaergia will receive de minimis cash consideration.

Anaergia determined, as part of its previously announced strategic review and consultation with professional advisors, that the projects require additional capital to reach operations beyond amounts available to the company under current lending facilities. As previously disclosed, Anaergia did not have the ability to purchase the associated loans in the event the lender option was exercised by Arjun.

As a result of the transaction, Arjun has acquired full ownership and control of the projects which will provide it with the opportunity to provide the additional capital required for each project to establish commercial operations. Accordingly, Anaergia has no further requirements to provide additional capital for the projects.

“As part of the company’s strategic review, it was determined that the best path forward was a consensual deal and arrangement with Arjun to help ensure the projects reach commercial operations in a timely manner. The transaction reduces our capital requirements and immediately helps improve liquidity for the company,” Anaergia CEO Brett Hodson says. “We look forward to assisting Arjun and the project teams to complete construction and further advance other business development opportunities in Italy.”

Anaergia and Arjun also have entered into a cooperation agreement to manage postclosing activities including Anaergia’s continued participation in providing remaining engineering, procurement and construction work on the projects, certain transition services, and the opportunity for Anaergia to receive additional consideration through performance incentives and an earn-out on terms to be negotiated in good faith.

Anaergia works to eliminate a major source of greenhouse gases by converting organic waste into renewable natural gas, fertilizer and water using proprietary technologies. With a record of developing projects on four continents, Anaergia provides end-to-end solutions for extracting organics from waste, implementing high-efficiency anaerobic digestion, upgrading biogas, producing fertilizer and cleaning water.