RE: EMAIL MR JUSTICE ZACAROLI - REQUEST SANCTION HEARING BE RELISTED FOR AFTER 7 JULY26 May 2021 11:21
ChanceryJudgesListing@Justice.gov.uk
THIS IS ONLY AN EXAMPLE BUT PLEASE AMEND AS YOU FEEL RELEVANT…
'SUBJECT: URGENT ATTN OF: MR JUSTICE ZACAROLI: CASE NO CR-2021-000852: HURRICANE ENERGY
Dear Mr Justice Zacaroli,
On 21 May you ordered, inter alia, a Shareholder Plan Meeting be held on 11 June, and a Sanction Hearing be held at a later date. I now understand this will commence on 21 June.
On 19 May, Crystal Amber Fund (the Company’s second largest institutional shareholder) notified the Company that it wished a Requisition Meeting be convened. The Resolutions of that Meeting to be voted on being that five named directors be removed from office with immediate effect, and that two Crystal Amber Fund nominees be appointed as additional directors with immediate effect.
Since the Company’s proposed Restructuring Plan dilutes shareholders’ financial interest by 95% and is in the view of most shareholders wholly unnecessary, it is near certain that the Requisition Meeting’s proposals will succeed. In which case, there will exist a new Board of Directors which is immediately likely to withdraw the proposed Restructuring Plan with the intention of submitting an alternative plan, which may well include a significant injection of equity capital.
It is clear that the tactic of the current board is to delay the Requisition Meeting (the EGM) until 30 June when the Company AGM is to be held, or even later until 7 July should it decide that the AGM and EGM will not be joined. To this end, on 24 May, Hurricane issued an RNS detailing the 11 June Shareholder Plan Meeting without any reference to the EGM. This despite Innumerable shareholders having written to the Company requesting that both Meetings be joined on 11 June. The Company’s Articles enable the EGM to be held from 8 June. It seems clear that a delay until after the proposed sanction date hearing is a deliberate attempt to achieve bondholder dilution and protect the current conflicted board of directors.
It would surely be counter-intuitive and quixotic for a Sanction Hearing to take place on 21 June when shareholders have voted against the Restructuring Plan and the Company is intentionally delaying the holding of a Requisition Meeting where five of seven directors will likely be asked to depart the Company with immediate effect, and consequently the proposed Restructuring Plan be withdrawn.
I write courteously requesting your consideration that a further Order be issued relisting the Sanction Hearing on a date later than 7 July, such date being the end-date by which the Company is obliged to convene the Requisition Meeting. I consider this to be in the interests of both bondholders and shareholders. Given that all interest is being paid on the bonds and repayment will be more than one year away, this relatively short deferral would be to the detriment of no party and is likely to assist.
Thank you for considering this matter
Yours etc
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