LONDON (Alliance News) - Regal Petroleum PLC said Monday it has agreed an extension to its security arrangements relating to its banking facilities with Ukraine's Unex bank.
Unex is part of the PJSC Smart-Holding group, which is ultimately controlled by Vadim Novinskiy, who also has an indirect 54% shareholding in Regal Petroleum.
In May last year, Regal Petroleum entered into a deal with Smart-Holding for the provision of a guarantee and security over some assets of Smart in relation to Regal Petroleum's cash deposits in Unex. When this deal was entered into it was envisaged that, as Regal sought to diversify its banking arrangements in Ukraine among a number of banks, there would be a reduction in the funds held with Unex, and therefore the security was set to expire at the end of March 2015.
However, this has not occurred, and Regal Petroleum's cash deposits held in Unex were reclassified as short-term investments. Regal Petroleum is continuing talks with both Smart-Holdings and Unex over a reduction of the cash balance held in Unex, and as such, has agreed to extend its May agreement until the end of May 2016, and the associated guarantee and pledge to end-August.
Shares in Regal Petroleum were up 9.1% at 3.30 pence Monday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
