The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Thank you rasberry. Very logical post. I would have thought that their is a very large pool of extreemly disgruntled Investors in xel that put together are looking at losing millions of pounds here. The thing that really gets me are the way that we were told only to listen to company news etc and I tried phoning Xcite as many other pi`s have only to be told that someone will get back to me. Now it seems that there was very definitely news that should have been relayed to ourselves regarding the state of affairs so that we could have made our investment decisions in relation to buying holding or selling. Especially in the last year or two....
To avoid impression of a conflict of interest/fiduciary situation arsing as the basis of any shareholder action against the bod they'd better be sure they are not tied in as subsequent beneficiaries of any bondholder action against the company. Having screwed this up to the extent they have apologetic action and exit forthwith might be their best strategy.
Ok here is the position as I see it. I have followed this for sometime but not previously posted. I am a shareholder in XEL. This will be familiar to many of you: 1) XEL is a BVI incorporated company that wholly owns Xcite Energy Resources plc (XER) a UK incorporated company. All relevant filings for XER can be found at UK companies house. XER has issued $135M of senior secured bonds. The bonds are secured by the assets of both XER and XEL. The bonds are listed on the Oslo stock exchange and relevant filings can be found on the Oslo stock exchange news web. 2) The bonds are due for repayment and negotiations as to an extension in the repayment date have failed. Neither XEL nor XER have been able to refinance the bonds. The bond holders are therefore pursuing their legal rights to enforce their security following what will constitute an event of default. It appears that they are seeking to keep XER as a going concern and therefore seeking enforcement against XEL and not XER. They are likely to have that right. 3) Bond holders have requested the bond trustee to pursue XEL into an insolvency liquidation by petitioning the Courts in the BVI for the appointment of a liquidator. From the latest RNS it appears that a provisional liquidator has been identified. Options available to shareholders: The bond holders position is likely to be strong and it seems hard to see that a liquidation will not follow. Shareholders should ensure that the proposed liquidator is appropriately arm's length. This is important for a number of reasons: a) to ensure that an appropriately robust negotiation takes place between the liquidator and bond holders in seeing if any assets or rights can be preserved for shareholders; and b) to ensure that they consider appropriately whether any rights of claim lie against the directors for their prior conduct and, if they do, that such rights are pursued. If shareholders do not believe the liquidator is appropriately arm's length this should be raised with the BVI court and an alternative unrelated and willing liquidator should be identified. The only other option seems to be to pursue a claim against the directors. Most directors of listed companies now maintain directors' and officers' insurance to cover such circumstances. This means that if a claim is successful there is an insurance policy to make a payout. It may well be that either no policy exists or if it does, the cover is not hat large. Shareholders are only ever really successful in these circumstances when they coalesce behind a shareholder action group that has some funding. Hope this is helpful.