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G3 Exploration Limited Corporate Update
Source: UK Regulatory (RNS & others)
TIDMG3E
RNS Number : 2873V
G3 Exploration Limited
02 December 2019
2 December 2019
G3 EXPLORATION LTD.
("G3 Exploration", "G3E" or the "Company")
Corporate Update
On 19 November, Nordic Trustees AS ("Nordic") presented a petition in the Grand Court of the Cayman Islands ("Petition") for the appointment of Alvarez and Marsal as Joint Official Liquidators ("JOLs") of the Company. The Petition is currently listed to be heard on 11 December 2019.
The Company believes that the interests of all stakeholders (debt holders and shareholders) are best served if Joint Provisional Liquidators ("JPLs"), rather than JOLs, are appointed to facilitate the re-structuring of its assets and on-going business. During the period of the provisional liquidation, the Company would also benefit from a stay of proceedings, which will give the Company adequate time to restructure its assets and liabilities.
In view of the significant asset base and investments of over US$1billon in the development of its assets, the Company is seeking to re-structure its assets and liabilities in accordance with its previously announced business plan and believes that the JPLs will facilitate such execution to the benefit of all stakeholders. As such, the JPL appointment under the supervision of the Grand Court of the Cayman Islands is, in the opinion of the Board, the preferred path forward for the proposed restructuring of the Company and its subsidiaries. Thus, the Company filed an application with the Grand Court on 25(th) November, 2019 to request the appointment of JPLs. Under the JPL application, the directors will retain control of the day to day management of the Company while the JPLs can focus on identifying, facilitating and executing a comprehensive restructuring plan. The application for the appointment of the JPLs will also be heard on 11 December 2019. If its application is successful, the Company expects to continue as a going concern through this process and following the re-structuring.
Notwithstanding these legal proceedings and the appointment of Receivers on 21(st) October, 2019, the Company continues as a going concern and has maintained its operations and remains committed to re-structure as follows:
1. Pay its Secured Creditors (Nordic and GIC) in full through either:
a. A Reserve Based Loan ("RBL") of c.$200m through the Green Dragon Gas producing assets. Active discussions to conclude such an arrangement with a bank is underway; or
b. Sale of sufficient equity for cash in wholly owned Green Dragon Gas so as to pay off creditors in full and have additional liquidity. Heads of Agreement with interested party is expected in the near term. A recent report, conducted for the RBL in October, valued the producing Green Dragon Gas, GCZ and GSS blocks at $485millon (1P) and $1.3 billion (2P).
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