(Alliance News) - Ascent Resources PLC on Monday said Ascent Slovenia Ltd successfully prevented its Slovenian joint venture partner Geoenergo doo's immediate insolvency.
Ascent Resources is a mineral exploration and development company with gold mining interests in Turkey, Cyprus and Kosovo, while Geoenergo is Ascent Slovenia Ltd's joint venture partner, of which Ascent Slovenia has an ongoing arbitration tribunal against.
Ascent Resources said Geoenergo's application to enter self-declared insolvency has not been approved by the relevant court, following petitions lodged by Ascent Slovenia Ltd.
"The primary points made by the company are that this application is an attempted abuse of the insolvency system by a solvent company attempting to dispose of Ascent's valid claim against them and that Geoenergo has not engaged with Ascent, its main creditor, to understand if an accommodation (such as a settlement or Ascent taking ownership of Geoenergo or its assets) can be reached which would avoid insolvency," said Ascent Resources.
It said the court accepted its creditor position based on the above and opted against approving Geoenergo's self-declared insolvency application.
Ascent Resources said a hearing will be held on February 23 to "deliberate the matter further". Geoenergo remains a solvent entity and an administrator will not be appointed, Ascent Resources said, while the latter said it would reach out again to joint venture partners to "offer constructive talks".
Ascent Resources said further announcements will be made "as necessary".
On Monday last week, Ascent Resources noted Geoenergo started insolvency proceedings in Slovenia, following an arbitration tribunal.
In late-October, Ascent Resources received a positive arbitration tribunal binding interim decision, confirming Ascent Slovenia's entitlement to proceeds above the baseline production profile from all wells in the concession area.
Shares in Ascent Resources were up 2.0% to 2.80 pence each in London on Monday afternoon.
By Greg Rosenvinge, Alliance News senior reporter
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Ascent Resources (AST)