LONDON (Alliance News) - Max Petroleum PLC said it shares will be cancelled from trading on AIM on Tuesday due to the continued uncertainty surrounding its financial position.
The company's shares have been suspended since March 2 due to uncertainty around the timing and outcome of the rehabilitation process of its subsidiary Samek International LLP and a creditor application to commence bankruptcy proceedings, as well as outstanding consent of the Kazakh anti-monopoly authorities for a USD13.8 million equity subscription by AGR Energy.
On September 14, Samek's application for rehabilitation was rejected by the Specialised Inter-District Economic Court of Almaty and it is now in the process of filing an appeal, which it said it is optimistic will be approved.
The rehabilitation process is similar to the Company Voluntary Arrangement in the UK which provides a company with protection against creditors. If the appeal is approved, it will provide Samek with a framework to reach an agreement with its creditors on a repayment timetable.
Max Petroleum added that it continues to work with AGR Energy towards completion of the subscription and has extended the long stop date to October 27. It said that cancellation of its shares will not affect its effort to complete the subscription.
Max reached a deal with AGR Energy in July, which would result in AGR owning around 63% of Max. The deal will "alleviate its severe immediate financial stress", Max had said at the time.
AGR Energy Group is a special-purpose vehicle that has been set up by the Assaubayev family established for the purpose of the subscription. The family are long-term investors in natural resources and metals and mining, according to Max Petroleum.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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