Substantial cost overruns to complete the MPF 01 Project were identified in June 2008. Following this, the Board of Directors and Management in conjunction with its advisors and the Bondholders have been running a process to sell or refinance the Project. In this period the continuation of the Project has been funded by its Bondholders.
As at today, the sale/refinancing process has not resulted in any firm offers from potential buyers/strategic investors and the Company has exhausted its financial resources. As such, the only option left for the Board is to continue the sales/asset realization process under the protection of insolvency proceedings.
Accordingly, the Board of Directors of MPF Corp. Ltd has filed for insolvency protection under the provisions of both US Chapter 11 and Provisional Liquidation in Bermuda. The objectives for these filings are to create a framework to achieve the orderly sale/realization of the Group's assets and protect the interests of its creditors. Efforts to sell the Project and/or the equipment contracts will continue under the insolvency proceedings.
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