Troubled oil and gas explorer Petroceltic on Monday applied for its shares to be temporarily suspended from trading in Dublin and London t until the wrangling over its future is resolved.
The move follows a petition to appoint an examiner to Petroceltic by dissident shareholder Worldview, which has a 29 per cent stake in the explorer.
Worldview on Friday brought the High Court petition aimed at securing court protection for Petroceltic, which owes about $230 million to its banks and is currently unable to make its repayments.
The matter has been adjourned until April 4th.
While the court did not appoint an interim examiner pending the hearing of the petition, it did grant the full protection of the examinership process to Petroceltic.
Petroceltic noted on Monday that Worldview’s petition was made without any prior consultation with it, reiterating that it was seeking legal advice on the matter.
Ongoing dispute
Worldview has been in dispute with the company for more than a year and has repeatedly tried to oust management and the board.
Petroceltic said it a further waiver on its debts by lenders was agreed on Friday. However it said the waiver could not be concluded given the petition.
The examinership move comes in the wake of Worldview's offer to buy the company via its Sunny Hill subsidiary for a cut-price 3p per share, valuing it at just £6.42 million. The shares closed on the London Stock Exchange on Friday at 7.5p.
Petroceltic’s board last week advised shareholders not to accept Worldview’s bid.
In a statement issued on Thursday, the company said it believed the terms and conditions of Sunny’s offer, combined with the current financial circumstances of the group, created “significant uncertainty regarding the ability for the offer to be completed in accordance with its terms.”
Skye Investment, which is fronted by Petroceltic chairman Robert Adair and which owns a 19 per cent stake in the explorer, last week signalled its intention to oppose Worldview’s bid saying it undervalued the company.
Petroceltic has said it continues to hold talks with a number of parties on both asset sales and potential corporate transactions.
