Hurricane Energy plc has revealed that the High Court of Justice of England and Wales has not sanctioned the company’s restructuring plan.
Following the development, the existing Hurricane Energy board said it is considering all options, including an appeal.
“Unless the company or the ad hoc committee successfully appeals the judgment, the restructuring plan will not be implemented,” Hurricane Energy noted in a statement posted on the company’s website.
“The company’s convertible bondholders have certain rights under the terms of the convertible bonds which, if enforced, could result in an acceleration of the convertible bonds and ultimately an insolvent liquidation of the company. As a result, there is a significant risk of no value being returned to shareholders,” Hurricane Energy added in the statement.
The company noted that a number of its shareholders have indicated that they were not supportive of its restructuring plan and, as a result, have indicated an intention to vote against the re-election of directors that are standing for re-election at the upcoming annual general meeting on June 30, and/or to vote in favor of resolutions proposed by Crystal Amber Fund Limited to remove all of the non-executive directors at the upcoming EGM on July 5.
“It is the company’s understanding that, in the event all of the executive directors are removed from the board, the company’s nominated adviser is likely to resign with immediate effect,” Hurricane Energy stated.
“This is likely to have the result that the shares of the company are suspended from trading and, if a replacement nominated adviser is not in place within a period of one month, it may result in the shares of the company being de-listed from AIM,” Hurricane Energy added.
Hurricane Energy was established to discover, appraise, and develop hydrocarbon resources from naturally fractured basement reservoirs, according to its website. The business has a portfolio of contiguous offshore licenses on the UK Continental Shelf, West of Shetland.
To contact the author, email andreas.exarheas@rigzone.com
No comments:
Post a Comment