1st May 2018 11:30
LONDON (Alliance News) - NightHawk Energy PLC on Tuesday said it has filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the District of Delaware to preserve its ability to pursue asset sales and restructuring of the business.
Shares have subsequently been suspended from trading on London's AIM market.
The company had said in mid-April asset sales would likely occur through bankruptcy filings, meaning shareholders would be unlikely to receive much value, if any.
Its two main assets are the Smoky Hill and Jolly Ranch projects on the Denver-Julesberg basin in Colorado.
That followed Nighthawk getting a default notice from its lender Commonwealth Bank of Australia.
In December 2017, the oil firm agreed with CAB to extend the maturity date on its loan to June. In October, the bank had agreed to a waiver related to a minimum production breach by Nighthawk.
In January, Nighthawk then engaged investment banking firm SSG Advisors LLC to seek options for restructuring its debt obligations to CBA.
The company said in mid-April it has signed non-binding letter of intent with a potential buyer ahead of the June maturity date for its credit agreement with CBA.
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