Foy told to pay up by ACT government over Hume plant

The company, which will soon be renamed Integrated Green Energy Solutions, missed its deadline for settlement for the Tuggeranong site in June, after it purchased the block from the Land Development Agency last year. At the time it owed more than $3 million.

In an announcement to the Australian Stock Exchange on Thursday, the company revealed its bid to defer settlement until it could raise the capital had been knocked back.

"The board wish to advise that it has been in discussions with the ACT Land Development Agency in order to have completion for the Hume site Foy intends to acquire in the ACT delayed until after the company's capital raise is finalised," the notice said.

"Foy has received a legal notice to complete the contract for sale for the ACT land at 2.30pm today.

"The seller has advised that if the completion of the contract is not effected in accordance with the notice, the seller may terminate the contract for sale and have recourse to other such rights as are available to pursuant to the contact.

"Foy is seeking legal advice and is continuing its discussions to defer the completion of the contract to a date post completion of the offer under the prospectus."

An ACT government spokeswoman said as of 5pm on Thursday, Foy had not settled.

However she revealed the government was in talks with Foy about a proposal they put forward in lieu of settlement.

"Advice is currently being sought from the Government Solicitor's Office. The government is committed to ensuring the arrangement is commercially acceptable," she said.

If settlement is not reached, the ACT government will keep the land and Foy's $155,425 deposit.

"As per standard practice we will reserve our right to pursue other damages," the government spokeswoman said.

Foy bought the block to open a plastic-to-fuel factory however the proposal was effectively killed off in May, after a health panel found there were too many risks associated with the unproven technology.

Foy director David McIntosh would not comment on how the company would raise the cash.

However Mr McIntosh did point to a revised prospectus issued on August 18 which said the company wanted to issue up to 75 million new shares to raise up to $15 million.

That money would be spent on building a manufacturing facility at the Hume site, where parts for a factory in Indiana could be built.

The Indiana factory is the first of 10 the company plans to build over the next five years in a joint venture with US resource recovery company GEP Fuel & Energy Indiana.

However Foy flagged its desire to still build a plastics-to-fuel plant at Hume, saying the manufacturing facility would be next door.