Orthios Update - September 2020

It has been a while since the last Orthios update, so we would like to provide a brief summary of their latest position ahead of a formal Bondholder Communication in due course.

Orthios had previously informed you about the Plastics to Oil equipment for the waste plastics processing. Shipping of the remaining equipment needed for the first P2O facility was subject to unforeseen delays and contractor problems at the end of 2019, which were further exasperated by the Covid-19 outbreak this year which has impacted almost all areas of industry. However, Orthios have managed to work through the difficulties and we are informed that most of the equipment is now on site and ready to install. This has taken a huge commitment from shareholders as, when the world was locking down, they invested significantly in order to get the equipment to site.

With the plant arriving, new jobs are being generated and the numbers of staff on site is expected to double between now and the end of the year. In current Covid times this is very positive for Anglesey as well as being a good environmental position with what is believed to be one of Europe’s largest plastics recycling units being achieved with the first plant alone.

At the same time there have been ongoing discussions with several other possible tenants of the site and Orthios are hoping to progress these towards contractual close during the remainder of this year.

Both of the actions above have enhanced the value of the security for the bonds and there is a lot of focus now on resolving the outstanding position with all debt holders.

For bondholders, most will be aware that Orthios have been looking to extend the period on the bonds with the site targeted to be income generating from Q2 2021. This will enable exit strategies to be progressed and there are numerous routes which Orthios are exploring for managing the exit of bondholders.

Further comment will be issued on Best Access intermittently and a full Bondholder Communication will be issued by Orthios to its bondholders in due course