30th Jun 2021 10:21
(Alliance News) - The chair and four non-executive directors of Hurricane Energy PLC resigned on Wednesday, after a court rejected the the company's restructuring plan.
The Surrey, England-based oil and gas company said its chair, Steven McTiernan, and non-executive directors - John van der Welle, Sandy Shaw, Beverley Smith and David Jenkins - all resigned with immediate effect.
Shares in Hurricane were trading up 21% at 3.40 pence each in London on Wednesday morning. The stock has doubled since its close on Friday last week.
Hurricane said Alan Wright and David Craik have now been appointed as non-executive directors, with Wright assuming the position of interim chair.
The company added that it would re-appoint Antony Maris and Richard Chaffe as directors if resolutions to re-elect them are rejected at its general meeting on Wednesday. The company said it would maintain Maris and Chaffe to ensure "its ability to safely and effectively operate as a listed business."
Hurricane noted that Crystal Amber Fund, which owns around 15% of the company's issued share capital, now has withdrawn its requisition notice, and the additional general meeting, scheduled for next Monday, has been cancelled.
The changes follow the rejection of Hurricane's restructuring plan by the High Court of Justice of England & Wales on Monday.
The board proposed the restructuring plan in April after diminished expectations of the Lancaster field led the company to conclude that it would be unable to repay holders of the company's USD230 million in convertible bonds due in July 2022.
Earlier this month, 92% of shareholders voted against a resolution to approve the plan, which would have resulted in massive dilution of their interests in the company, as the bondholders would own 95% of the company following the debt to equity conversion.
By Scarlett Butler; [email protected]
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