(Alliance News) - Cadogan Petroleum PLC on Friday said that an announcement by Proger Managers & Partners SRL and Proger SPA is "totally groundless", as the dispute over an unpaid loan continued.
"Proger Managers & Partners are using a dilatory tactic to delay the reimbursement of the loan," Cadogan said.
In a statement dated March 24, PMP, a part-owner of Italian engineering firm Proger, said it started a procedure in the arbitration chamber of Rome after Cadogan failed to fulfil the loan agreement.
On March 22, Cadogan, an oil and gas exploration and production company, said it would take legal action after the EUR14.9 million loan wasn't repaid.
The loan dates back to February 2019, and included an option for London-based Cadogan to convert the loan into a 22% stake in Proger. Cadogan said it did not exercise that option.
Shares in the company ended down 11% at 4.00 pence each in London on Friday.
By Ivan Edwards; ivanedwards@alliancenews.com
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Cadogan (CAD)