Sequa Petroleum N.V. commences liquidation of its 100% Norwegian subsidiary (Tellus)
March 17 2017 - 2:01AM
Sequa Petroleum N.V. (the
"Company") today announces that consultation procedures with Tellus
Petroleum AS ("Tellus") employee representatives have concluded and
Tellus board and shareholder meetings have resolved to commence the
Tellus liquidation process in accordance with the Norwegian
Companies Act.
As stated in the Company's press
release of 9 February 2017, the cessation of its business in
Norway, now followed by the commencement of liquidation,
constitutes under article 10 (g) of the Terms and Conditions of the
Bonds a potential default of the Bonds.
The Company expects this potential
default, together with the potential default related to the
outstanding Q4 2016 Bond coupon as stated in the Company's press
release of 14 November 2016, to be resolved with Sapinda's support
as the Company understands that the required majority of the Bonds
is held by Sapinda and affiliates.
While amounts received to date have not matched
the timing or quantum requested, the Company currently expects to
be able to draw sufficient funds from its convertible loan
facilities with Sapinda Invest Sarl and Sapinda Asia Limited to
enable it to continue to trade and complete the liquidation of
Tellus.
The net funds expected from the repatriation of
liquidated assets together with debt restructuring and possibly new
equity and/or debt funds will enable the Company to progress
selected high quality appropriately sized acquisition targets of
production and development assets elsewhere that are
value-accretive and provide cash flow.
Contacts:
Jacob Broekhuijsen, Chief
Executive Officer
+44(0)203-728-4450
or info@sequa-petroleum.com
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Sequa Petroleum NV via Globenewswire
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