12th Dec 2019 14:11
(Alliance News) - G3 Exploration Ltd said Thursday the Grand Court of the Cayman Islands accepted the appointment of Alvarez & Marsal as joint provisional liquidators to work with the board and management in developing a re-structuring plan.
G3 said in accordance to the company's application and acceptance of the court, the board and management will continue to maintain the operations as a going concern and conclude the re-structuring plan with Alvarez & Marsal for submission to the court.
As a result of this positive conclusion, the company does not intend to apply for any suspension of trading of its shares on the London Stock Exchange. G3 Exploration shares were up 30% in London at 23.04 pence each on Thursday.
Under the Alvarez & Marsal appointment, the directors will retain control of the day-to-day management of the company, while Alvarez & Marsal can focus on identifying, facilitating and executing a comprehensive restructuring plan, G3 Exploration said.
Randeep Grewal, chair of the company, said: "A successfully re-structured G3 Exploration rewards all stakeholders which the board and management are committed to deliver. This ruling allows the necessary time to do so and thereafter continue as a going concern."
In mid-November, G3 had said bondholders asked the court in the Cayman Islands to appoint joint official liquidators for the company. Nordic Trustees, a trustee for G3's 10% senior secured callable bond, presented the petition.
G3 then said it had sought to stave off the appointment of liquidators as it came up with a new business plan. The company had asked for joint provisional liquidators to be appointed, which would give G3 the chance to come up with a new plan. Its own directors would remain in charge of the company were provisional liquidators appointed.
This has now been granted.
G3 owns eight gas production blocks across a number of provinces in China.
By Loreta Juodagalvyte; [email protected]
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