CIC Energy walks financial tightrope

According to its quarterly results released last week, the Canadian firm has cash and cash equivalents of about 19.4 million Canadian Dollars (P130.7 million), against a budget of approximately 17.2 million (P116 million) for various expenses through to February 2012.

The expenses include consultancies towards the finalisation of the JSW Energy deal under which the Indian firm will take over CIC Energy, as well as costs of arbitration in Hong Kong where a joint venture partner is suing. In addition, CIC Energy needs to have 10.5 million Canadian Dollars (P70.8 million) ready to pay JSW in case the planned takeover does not occur by May 31. The non-completion fee, however, falls away if the takeover fails due to the Indians withdrawing their offer.