(Alliance News) - G3 Exploration Ltd requested shares be suspended from trading Thursday as a bondholder brought a liquidation petition to the court.
Nordic Trustees, a trustee for G3's 10% senior secured callable bond, presented a petition to the Grand Court of the Cayman Islands for the appointment of liquidators.
A hearing, G3 said, will be heard on the court on December 11.
G3 owns eight blocks covering over 7,500 square kilometres on the Chinese provinces on Shanxi, Jiangxi, Anhui, and Guizhou.
In September, G3 said Nordic Trustees had met with other bondholders to discuss the state of the bond. In February, coal bed methane firm G3 declared a dividend in specie, which will give its shareholders a direct interest in subsidiary Green Dragon Gas, which holds all of G3's assets.
It had hoped this move would relieve some pressure on its own balance sheet.
By George Collard; georgecollard@alliancenews.com
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G3 Exploration (G3E)