Gemini/ San Leon16 Jun 2025 04:41
San Leon Energy's refinancing efforts have been ongoing and have faced various challenges. Here's a summary of the latest information, keeping in mind that the company's shares were suspended from trading on AIM as of July 1, 2024, due to delays in publishing accounts and completing refinancing:
Key Updates and Challenges:
* Ongoing Refinancing Plans: San Leon has been actively pursuing refinancing to fund further investments in Energy Link Infrastructure (Malta) Limited ("ELI") and to settle its outstanding creditors.
* Previous Funding Issues: The company previously announced that funds would not be forthcoming from Tri Ri Asset Management Corp. ("TRAM"), and San Leon has been exploring its options in relation to TRAM's breach of contract. Recently, San Leon secured a temporary €50 million freezing order against TRAM.
* Legal Actions: San Leon has been involved in legal disputes, including a recent High Court action against Brightwaters Energy Ltd and an ongoing situation with Ocean Pearl regarding an acquisition. These legal issues can add complexity to refinancing efforts.
* Increased ELI Funding Requirements: ELI's funding requirements have increased since October 2023, which has been factored into the current refinancing negotiations.
* Outstanding Creditors: San Leon has numerous outstanding trade creditors (around US$25 million in aggregate) who have been exerting increasing pressure, including legal letters. The expectation of funds from the refinancing has been providing some reassurance to these creditors.
* Toscafund Loan: A US$5.0 million loan from Toscafund Asset Management LLP remains outstanding and continues to accrue interest at 10% per annum. Toscafund, which owns 75% of San Leon's Ordinary Shares, remains supportive.
* AIM Suspension and Future Listing: Due to the delays in publishing accounts and concluding the refinancing, San Leon's shares were suspended from trading on AIM on July 1, 2024. The company has stated its firm intention to undertake a listing, either in the UK or on an international stock exchange, in the second half of this year (2024) to restore liquidity for its shareholders.
* Midwestern Transactions: Documentation regarding proposed transactions with Midwestern, including approximately US$140 million of outstanding loan notes, is at an advanced stage.
Current Outlook:
San Leon's management remains optimistic, with the CEO stating in a previous announcement that they believe they are "close to achieving our objectives through our refinancing plans." However, there's no certainty that the current refinancing plans will be concluded, or as to the timescale for completion or final terms.
Investors should continue to monitor official announcements from San Leon Energy for the most up-to-date and definitive information on their refinancing.