Biofuels receives restructuring proposals from Barclays

By Caroline Salls

Pittsburgh, May 29 - Biofuels Corp. plc has received restructuring proposals from Barclays, according to a company news release.

According to the release, Barclays would also be willing to make additional facilities available to support Biofuels' medium-term funding requirements.

Biofuels announced on March 28 that it would need additional funding beginning June 1. The company said it would need between £16 million and £25 million to carry it through to Dec. 31, 2007, and Barclays agreed to provide some of that financing then.

The company's board of directors also said in March that it was investigating options to restructure its debt to secure the company's longer-term future.

Biofuels said it intends to discuss the proposals with Barclays as soon as possible.

Given its current debt levels of about £100 million, the company said shares would most likely be significantly diluted in any debt restructuring, and the restructuring could prompt Biofuels to seek cancellation of its stock listing.

Based in the United Kingdom, Biofuels' principal activity is constructing and operating biodiesel plants.

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