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Good news , hope lives on

Part 2

It’s understood the most recent statement of affairs for Barryroe shows the business has less than €350,000 remaining in cash. As part of the examinership application, an independent expert report on whether there is a viable future for the company states that it could “pivot” into renewable energy projects.

The independent report, which was compiled by Teneo Ireland’s corporate restructuring arm, said Vevan Unlimited has committed to funding Barryroe through an examinership process with a view to exploring renewable energy opportunities in the Irish market.

“Vevan sees a future for the company by reducing its focus on the fossil fuel industry and possibly pivoting the business towards green energy projects,” the report, which was first revealed by the Irish Times, said.

“Vevan is of the view that Barryroe Offshore Energy could develop its business model based on green energy and securing energy which benefits from lower CO2 emissions. Within companies connected to Vevan are divisions focused on sourcing and developing green energy projects that align with the broader group’s mission, which could assist with the realignment of [Barryroe’s] model,” the report stated.

It’s understood the remaining team of fewer than 10 employees at Barryroe will be retained as part of the shift in focus to renewable energy.

Barryroe’s future looked all but over in June this year after Ryan refused to grant a ministerial lease undertaking to carry out appraisal drilling. A recent geological survey estimated there are potentially 80 million barrels of oil available at the Barryroe field, which would be worth almost €6 billion based on the current oil price.

Yet despite the promise of the site, not a single barrel was ever extracted. At its peak, the company had a market cap of around €350 million. Today, it is virtually worthless, with most shareholders resigned to winding up the company as recently as last week.

However, Goodman’s last-minute intervention could chart a new future for the business, which has been one of the most controversial companies to ever list on the Irish stock exchange.

The examinership process that Goodman is seeking to use to save Barryroe was first introduced through emergency legislation in 1990 to save the Louth businessman’s beef empire from collapsing at the time.

Business post article part 1

Barryroe Offshore Energy, the Larry Goodman-backed oil exploration firm, looks set to enter a dramatic last-minute examinership process to save the business after no objections were lodged against the proposed move by creditors of the company.

The examinership application, which is subject to court approval tomorrow, was first proposed on July 21 by Vevan Unlimited, a vehicle controlled by beef baron Goodman, in a bid to shield Barryroe from its creditors and give it time to seek new investment.

Goodman holds a 20 per cent stake in Barryroe, formerly known as Providence Resources.

His move came just three days before investors were due to vote on liquidating the company after Eamon Ryan, the Minister for Climate, refused to grant an exploration licence for its oil field off the Cork coast.

Goodman is proposing that Kieran Wallace, managing director of Interpath Ireland, be appointed as examiner with a view to formulating a recovery plan, including seeking new equity investment. Goodman’s last-ditch bid to save the company will be decided by Mr Justice Michael Quinn in the High Court tomorrow.

I suppose with the €270m tax writeoff, he could pay circa €25m to €40m based on new upcoming 15% tax for larger turnover companies and in effect the government would be paying it for him.

As he is paying the top guys ,he wants this examinership to succeed . So he sees value in it but for tax write off or risky expensive legal actions . There must be some else he sees ???

And why didn’t he just let it go into liquidation and then buy the assets of the company ,namly Exola . It would have been cheaper and easier than takeover of a company in examinership

Did not know the relevance of your first paragraph

The question is why did he put it into examinership ? Why not just let it go into liquidation and the then buy it for peanuts.

Maybe there are legal reasons for keeping it alive .

Maybe he will use it as a shell for renewable businesses. Such a company focusing on such a business with the Goodman name behind it might be very attractive to investors with the chance of future legal payouts also in the backround.

It should be noted that Larry Goodman's ABP Food Group already owns a green energy plant in the UK called Olleco

Part 2

Emergency laws

The examinership process that Mr Goodman is looking to use for BOE was established under emergency laws originally enacted in the summer of 1990 to save the businessman’s beef processing empire from collapse.“Vevan is of the view that the [BOE] could develop its business model based on green energy and securing energy which benefits from lower CO2 emissions,” the report said. “Within companies connected to Vevan are divisions focused on sourcing and developing green energy projects that align with the broader group’s mission which could assist with the realignment of [BOE’s] model.”

Mr Murran added: “In working with Vevan in preparation of my report, I understand it believes that there is opportunity in the Irish market across the green energy agenda and, if appropriate green energy opportunities can be identified, there is real potential to grow the company’s business in the Irish market.”

BOE has burned through more than €270 million of cash raised from share placings over the past 12 years. Barryroe was the last remaining exploration hope.

The prospect, 50km off the Cork coast, was found more than a decade ago to have more than 300 million barrels of oil as well as gas resources. BOE saw three development partnership deals fall through over the period.

Report from todays Irish times . Part 1 below

Markets CorrespondentBeef tycoon Larry Goodman’s bid to have an examiner appointed to Barryroe Offshore Energy (BOE) is being pitched on the possibility that the oil and gas explorer could move its focus to green energy projects, according to an independent expert’s report linked to the petition.

Mr Goodman’s Vevan Unlimited, which owns almost 20 per cent of BOE, filed a request last Friday for the High Court to appoint an examiner appointed to the company.

The move came three days before shareholders were due to vote on putting the company into liquidation after Minister for the Environment Eamonn Ryan refused to grant a permit for its key Barryroe oil project off the Cork coast.

Mr Justice Michael Quinn is scheduled on Monday to hear the petition to secure court protection for BOE from its creditors in order to restructure its finances. Kieran Wallace, managing director of Interpath Advisory in Ireland, is being proposed as the examiner. BOE, which is running out of cash, had recently been seeking to secure fresh funds from big shareholders to keep the company running in order to pursue a legal case – by way of a judicial review – against the Minister.

Reasonable prospect

The independent expert’s report, which must offer an opinion that a company has a reasonable prospect of surviving as a going concern, does not explore the possibility of potential legal action, with its attendant risks.However, the report, written by Damien Murran, head of Teneo Ireland’s corporate restructuring practice, said that an examiner could explore “what recourse [if any] the company may have regarding existing or expired exploration licences”.

“Vevan sees a future for the company by reducing its focus on the fossil fuel industry and possibly pivoting the business towards green energy projects,” it said. Mr Goodman’s company has committed to funding BOE through an examinership period and engaging with the examiner “to formulate an offer of investment in the company”, the report said.

A recovery plan for BOE “will require a recapitalisation of the equity structure of the company, with the introduction of new equity fund and/or a change of ownership”, it added.

Article in today’s Sunday Times, mainly a rehash of what is already known. The only interesting thing is the following

“It is understood that Goodman plans to move Barryroe away from fossil fuels and towards climate friendly projects, while also reviewing its options regarding possible legal action against the state.”

My understanding is that the protection of the high court starts from the time the petition was presented, Friday 21st July and not the date the order might be issued.

So while under high court protection, no resolutions can be made to wind up the company.

For the petition to succeed and in the application for the petition, the petitioner must show how they will fund the company during and after the period of protection.

So we now know LG will provide funding for its survival , if he wants the petition to succeed.

logp average operating expenses is about 150,000 per annum , no reason the future BOE can’t match near that amount as licence fees and surplus staff /services won’t be required.

It’s quiet ironic that the initial examinership process was introduced through legislation in 1990 to save Goodman’s beef empire from liquidation at the time.

He wants to appoint Kieran Wallace, managing director at Interpath Advisory as the examiner.

In Feb 22, The Currency reported this on interpath advisory

“They are five of Ireland’s most senior and respected restructuring and insolvency experts. Now, in a move that will cause tremors across Ireland’s close-knit accountancy industry, all five have resigned their partnerships in ‘Big Four’ firms to lead a new restructuring and advisory firm that is entering the Irish market.

In a major shock of the industry, KPMG partners Kieran Wallace and Eamonn Richardson have both resigned to join Interpath Advisory, a private equity-backed business that acquired KPMG’s insolvency business in the UK last year. They will be joined by Deloitte partners Ken Fennell, Mark Degnan and James Anderson.”

These are big hitters so obviously LG believes the litigation route has profitable potential. A reverse takeover of logp as part of that restructuring???

Goodman seeks appointment of examiner to Boe

https://www.irishtimes.com/business/2023/07/21/larry-goodman-petitions-for-examiner-to-barryroe-offshore-energy/

Examinership is a mechanism provided for the rescue and return to health of ailing, but potentially viable companies.

Life in the old dog yet

Hope springs eternal .. the game is not over yet

Part 2

David Swinburne, a chartered accountant and partner with Cork-based law firm FitzGerald Legal and Advisory, is being lined up as liquidator to BOE if fresh finance is not committed before the meeting.

BOE chief executive Alan Curran did not respond to an effort to secure comment, while a spokesman for Mr Goodman declined to comment.

“I think it’s over at this stage,” said one of BOE’s 10 largest shareholders, who declined to be identified.

Another major shareholder said: “There are no discussions going on now between shareholders on funding.”

BOE has burned through more than €270 million of cash that has been raised from share placings over the past 12 years. Barryroe was last remaining exploration hope. The prospect, 50km off the Cork coast, was found more than a decade ago to have more than 300 million barrels of oil as well as gas resources. BOE saw three development partnership deals fall through over the period.

Mr Goodman’s Vevan vehicle moved last November to provide a €40 million funding backstop for the Barryroe project, after Mr Ryan’s department expressed concerns about BOE’s ability to fund the next stage of work on the field while officials considered an application for a crucial permit, known as lease undertaking.

Vevan subsequently allowed other major BOE shareholders, including businessman Nick Furlong’s Pageant Holdings and UK hedge fund Kite Lake, to participate in the funding line.

Permit refused

The Minister, however, relied on a criterion in non-mandatory guidelines issued by his department in 2019 – that licence applicants should have net tangible assets of 3½ times the cost of planned works – to refuse the permit.

The company had negative net assets as of June 2022, after exploration and evaluation assets were stripped out.

UK-based Lansdowne Oil and Gas has a 20 per cent stake in the Barryroe project and is planning to pursue a multimillion-dollar compensation case against the State over Mr Ryan’s decision under an international arbitration facility.

BOE’s 80 per cent interest is held through a subsidiary called Exola, which was the operator of the licence. Industry observers suggest that Exola might attract bids in the event of the wider group going into liquidation from parties willing to take on judicial review proceedings against the Government over the permit decision.

From todays Irish times

Part 1

Barryroe Offshore Energy’s (BOE) efforts to raise emergency funds from large shareholders to keep the oil explorer afloat are set to come up short, with only days to go before an extraordinary general meeting (egm) on Monday to put the company into liquidation, according to sources.

BOE, which is running out of cash, has been seeking to secure fresh funds to keep the company running in order to pursue legal action against Minister for the Environment Eamon Ryan after he decided in May not to grant a permit for further work on the company’s key Barryroe oil and gas prospect off the Cork coast.

There are currently no discussions going on between the major shareholders to come together as a group to provide new funds, according to sources with knowledge of the matter.

There continues to be lingering, if declining, speculation, however, that beef tycoon Larry Goodman, who owns almost 20 per cent of the company, may step up before the egm on Monday morning to provide finance for BOE to effectively be run as a litigation vehicle to pursue a judicial review of the Minister’s decision.

My understanding and am open to correction but once a company is liquidated, it ceases to exist completely as a legal entity and therefore the answer is no.

I think LG & pals or “ others”will buy it from the liquidator to keep their options open or maybe the liquidator will sell it to lansdowne oil and gas and keep us in the game .

Very true except for the fact that the only antidote to legislation is new legislation

Nice few buys coming through today