Maple Energy shares tumble on ethanol funding concerns

The recent selling pressure on shares of Peru-focused energy group Maple Energy continued on Wednesday as the stock plunged by almost a quarter on the back of funding concerns for its ethanol business.

Maple works across a number of areas, including sugar cane-based ethanol production, oil and gas production, and refining, marketing and distribution of hydrocarbons.

The company said that it had received a waiver from the senior lenders of its ethanol business which has now expired, with no formal extension being made.

"However, the company continues to work with the senior lenders to define the steps and actions that will be taken with regard to the ethanol companies. The continued working capital support from the senior lenders is critical to the company at the present time," Maple said.

The group has been hit recently by lower ethanol prices and was forced to close a plant for 12 weeks after the sugar cane crop hadn't reached harvest stage. It is still looking for equity investment from strategic investors or business disposals in conjunction with its senior lenders.

Maple's shares finished down 24% at 1.9p on Wednesday and has now fallen nearly 70% over the past month.