The Company announced on 7 September 2010 that the group’s £225 million power station facility with Bank of Scotland plc and The Governor and Company of the Bank of Ireland (on behalf of the National Asset Management Agency) (together the “Banks”) and £37.55 million site assembly facility with Bank of Scotland plc had been extended to 31 August 2011 and all existing breaches been waived, conditional, inter alia, on the Company effecting a compromise by 1 October 2010 with the holder of the £150 million series A and series B loan notes including in relation to all principal and interest.  On 4 October 2010, the Company further announced that the lenders under the Battersea facilities had agreed to extend the date for such compromise to be reached to 10 October 2010.

The Company is pleased to announce it has signed an agreement (the “Agreement”) with the loan note holder which defers all principal and interest payments due until 31 May 2011.  The Agreement also confirms the basis of a wider compromise arrangement, contingent upon the completion of detailed documentation and approval of the Banks, the loan note holder, the holders of the Company’s 7.5% convertible unsecured loan stock and the zero dividend preference shares issued by the Company’s wholly-owned subsidiary REO Securities Limited and REO’s ordinary shareholders.  A further announcement setting out the agreed financial restructuring terms will be made in due course.