Graphene Nanochem agreed to restructure its debt with its Malaysian lenders - and as part of the deal Nanochem will sell its non-core business and exit from low-margin operations.
Graphene Nanochem has about £16 million in debt to Malaysia Debt Venture, and the maturity on that debt was pushed back from November 2015 to the end of 2012 (at an interest rate of 8%). The company will pay its remaining £12 million long-term debt by selling its fuel additive assets and palm oil refinery.
Graphene Nanochem will now focus on oilfield chemicals and water solutions. The management says it has been encouraged by "perceived growth opportunities and increasing market traction". In January the company received its first commercial order for its Confi-Gel additive into the oil and gas sector through its Scomi Joint Venture Venture. Graphene Nanochem also recently launched its enhanced water treatment solution platform.
In October 2015 Graphene Nanochem reported their financial results for the first half of 2015. Revenues were £7 million (down from £20.4 million in H1 2014) and the loss before tax was £3.7 million (a £200,000 greater loss compared to H1 2014). Back then the company already announced its intention to exit the fuel additive business.