Last checked at 3 Nov 2020 07:00
2 November 2020
G3 EXPLORATION LIMITED
("G3 Exploration", "G3E" or the "Company")
Corporate Update
On 13 October 2020, by order of the Grand Court of the Cayman Islands (the "Court") the Company was moved from being in provisional liquidation to full, official liquidation, although the formal, signed and sealed Court order confirming this was not received by the JOLs until Friday 16 October 2020.
Upon receipt of the Court order the Joint Official Liquidators ("JOLs") took all reasonable steps to make an announcement, which was in any event after the Director of the Company had already taken steps to file the Notice to suspend the listing on the London Stock Exchange ("LSE").
Since appointment, the JOLs have been liaising with both the Financial Conduct Authority ("FCA") and the LSE to confirm their appointment and their role.
Determination of Solvency
In accordance with the Cayman Islands Companies Winding Up Rules ("CWR"), the official liquidators shall determine whether the Company should be regarded as being -
(a) solvent;
(b) insolvent; or
(c) of doubtful solvency.
At this stage the JOLs determine that the Company is of doubtful solvency and they will be filing the formal certificate with the Court to confirm this determination. Due to the certification of doubtful solvency the JOLs shall in accordance with the CWR, be convening meetings of both creditors and shareholders.
Group Structure
The Company's role within the broader corporate group (the "Group") was to act as a holding company and to raise financing for the benefit of the Group, through issuing securities. The Company is the sole shareholder of Greka Gas China Ltd., ("GGC") and the indirect shareholder of a further 12 entities.
On 9 September 2019, Borrelli Walsh (the "Receivers") were appointed receivers of GGC, such that GGC (and a number of its subsidiaries) are now controlled by the Receivers.
At this time, the outcome and timeline of the joint official liquidation of the Company, will be subject to the actions of, and the realisation of assets by the Receivers of GGC.
Role of the JOLs
The JOLs are independent officers of the Grand Court of the Cayman Islands. Upon appointment of the JOLs, all powers of management of the assets, property and business of the Company vest in the JOLs.
The JOLs have complied with their statutory duties upon appointment, and are in the process of taking control of the books and records of the Company. In the near future, the JOLs will be writing to all known and potential creditors of the Company, as well as confirming the status of the shareholders. As stated above, the JOLs will, in due course, be convening meetings of the creditors and shareholders to provide further information.
Should you have any queries, please do not hesitate to contact my colleague, Rebecca Rohan, via email at rrohan@alvarezandmarsal.com.
Yours faithfully,
Alexander Lawson
Joint Official Liquidator