Indonesian group to snare Natural Fuel

Natural Fuel Ltd has struck a US$40 million funding deal with Indonesia's Risjadson Group, which could see Risjadson acquire a 49 per cent stake in the struggling biofuels company.

Under the term sheet, executed today, Risjadson's subsidiary company, Power Knight Pte Ltd will guarantee a $20 million finance loan to NFL's Singapore subsidiary, with the option to convert the remaining $20 million into about 168 million NFL shares.

Earlier this month, Natural Fuel announced the departure of its chief executive Earl McConchie, effective immediately.

The company said the position would not be filled, but would instead be absorbed immediately by internal staff in Singapore and Perth.

Natural Fuel Ltd announced in December that the first processing train at its 100 per cent-owned biodiesel facility in Singapore was ready to begin commissioning, with production of biodiesel and refined glycerine beginning last month.