LONDON (Alliance News) - Circle Oil PLC said Thursday it expects the cancellation of its AIM listing on Friday, despite agreeing a further delay on repayments due under its lending facility.
Circle Oil's AIM listing was suspended in June after a strategic review found its heavy debt load of USD77.5 million was likely to leave no value for its shareholders.
On Thursday, Circle Oil said its financial position remains under "significant pressure" following the calling in of a USD20.0 million loan repayment by Circle Link Sarl in October. The company said it is continuing to discuss its position with Circle Link but offered no further details.
Circle Oil also said it expects its listing on AIM to be cancelled with effect from Friday.
However, it said a waiver on repayments due under its lending facility with International Finance Corp and other syndicate members has been re-instated until January 26.
IFC and another unnamed syndicate member also have agreed to provide additional stand-by funding while Circle Oil concludes a strategic review. The effective interest rate for this funding is 15% per annum plus the three-month London Interbank Offered Rate.
"The strategic review process remains ongoing. The directors continue to expect there will be no value attributed to Circle equity holders as a result of the strategic review process," Circle Oil.
By Adam Clark; adamclark@alliancenews.com
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