Lekoil Ltd - Cayman Islands-based litigation asset company with an investment in oil & gas assets in Nigeria - Lekoil Nigeria Ltd on Thursday confirms the announcement made by Lekoil Ltd late Wednesday that the two sides have agreed to end all legal proceedings against each other and settle all claims. As part of the deal, the two companies agree to surrender all shares in each other.
Lekoil Ltd agrees to waive all rights to repayment of debts owed by Lekoil Nigeria and Olalekan Akinyanmi, the former CEO of Lekoil Ltd. Lekoil Ltd also will grant a new loan of USD51.9 million to Lekoil Oil & Gas Investments Ltd in consideration for the transfer to LOGI of loans made to Lekoil Nigeria, the release of security related to those loans, and the waiver of any repayment due for the loans.
As part of the settlement, Lekoil will change its name to Fenikso Ltd and stop using the Lekoil name or brand.
On Wednesday, Savannah Energy Investments Ltd, a subsidiary of Savannah Energy PLC, agreed to terminate the option agreement that gave Savannah Energy Investments the option to take an assignment of a USD135 million loan between Lekoil Ltd and Mayfair Assets & Trust Ltd, a subsidiary of Lekoil Nigeria. Savannah Energy also will release its security interests over OPL 310, a Nigerian oil block, and all of its shares in Lekoil Ltd.
Lekoil current stock price: last traded on AQSE in London at 069 pence on December 1 for GBP5.5 million market capitalisation.
By Tom Waite, Alliance News editor
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