Long-suffering investors in waste technology play AnaeCo must keep waiting after it flagged a third extension to the deadline for a critical debt transaction.

Private firm Xiaoqing Environmental Protection Technology (XEPT) is buying the major portion of a loan owed by AnaeCo (ASX:ANQ) to Monadelphous Group Limited (ASX:MND).

The deal was initially supposed to close by the end of December last year. The latest deadline was September 30.

“All conditions precedent have still not been satisfied within the extended period and we understand the buyer [XEPT] is not yet in a position to proceed to completion,” AnaeCo said. “XEPT as buyer and Monadelphous Group Limited as seller are negotiating a further extension to the scheduled completion date.”

Under the transaction, XEPT and Monadelphous will convert their loans to equity in AnaeCo, making the company debt-free with $3.7 million cash on its books.

In September, AnaeCo’s auditor flagged doubts that it could continue as a going concern.

Last year it lost $5.8 million, and its liabilities exceeded its assets by $20.3 million.

On Monday AnaeCo repeated its assurance that the deal is still current and its funding needs will be met through the Monadelphous loan.

AnaeCo was suspended from trading on August 30 at 0.3c. It hasn’t traded above 1c in the last 52 weeks.