Hang on though!26 Oct 2020 18:28
The last corporate update prior to the hearing stated,
‘ The Petition seeks the winding up of GDG on the ground that it is unable to pay its debts on a cash flow basis, and nominates the Company's Joint Provisional Liquidators to act as the Joint Official Liquidators of GDG. The Petition is listed to be heard on 13 and 14 October 2020.
GDG, in which the Company invested $342m, is an intermediate holding company of all the Group's producing assets which specifically include the GSS (Shizhuang South) and GCZ (Chengzhuang) blocks in Shanxi province in partnership with CNOOC and CNPC respectively.
The Chairman and CEO of the Company, Randeep S. Grewal, commented: "The Board of the Company is in support of the relief sought in the Petition and expects such action to provide the Company's stakeholders with fair market returns upon the sale of GDG assets."
So the management supported the petition for the company to be wound up. The CEO stated that he “ expects such action to provide the Company's stakeholders with fair market returns upon the sale of GDG assets."
So is it not the case that the company has got what it wanted namely a court order to be wound up, joint official liquidators appointed (ie those who have now issued this update letter) and that assets will now be sold off with creditors paid first then shareholders.
Seems to me if a good price is achieved for the assets they have pumped $342 million into then far from nothing shareholders may get more than the price when the share was suspended. Just a thought...........
Maybe worth e mailing the liquidators to clarify.
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