RE: Info6 May 2021 22:36
adoubleuk - Thanks for that. Paragraph 8.4 - 8.7 pretty much spells it out....
8.4 by implementing the Restructuring Plan, the outcome for the Plan Company, its business, and its operations and employees is likely to be better than in the event of the relevant alternative.
8.5 Consequently, the Plan Company considers, on the basis of professional advice it has received, that the implementation of the Restructuring Plan is in the best interests of the Plan Company’s stakeholders taken as a whole (including the Bondholders).
8.6 The Group has engaged PricewaterhouseCoopers LLP (the Restructuring Firm) to prepare an outcome report for the Plan Company and the Group to establish the potential recoveries by the Group’s stakeholders in the alternative scenario where the Restructuring Plan is not implemented (the Outcome Report). The Outcome Report (which will be provided to Bondholders on a non-reliance basis) will be appended to the Explanatory Statement, which will be circulated to Bondholders promptly following the Convening Hearing. The Outcome Report indicates that shareholders would not make any recovery in the relevant alternative scenario. For further consideration of the relevant alternative and related impacts, please see paragraph 12 (Consequences if the Restructuring Plan is not sanctioned or the Restructuring is not implemented) below.
8.7 Without the Restructuring, production at the P6 Well would conclude in May 2022. If the Restructuring is implemented in accordance with the Restructuring Plan, this will facilitate production at the P6 Well being continued for an extended period (anticipated to be until February 2024), subject as provided in paragraph 8.8 below. Unless there is further investment, the Lancaster Area would, at the end of that extended period, then likely be decommissioned, a process which is estimated to take three to four months. Following decommissioning, the remainder of the Plan Company's business would be wound down and all third party Claims would be settled. Based on financial forecasts, utilising the Plan Company's technical cases and financial model, which take into account a number of market variables as well as ordinary course matters, the Plan Company considers that, by enabling a longer period of production of the Lancaster Area, the Restructuring would likely result in a higher level of return for Bondholders than in the event of the relevant alternative.
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