16th Jul 2015 07:05
LONDON (Alliance News) - The long-running battle at Petroceltic International PLC reignited Thursday after the company said it has received a letter seeking to call an extraordinary general meeting from its largest shareholder Worldview Capital Management Ltd.
The request for a meeting follows on from claims made by Worldview earlier this month that Petroceltic had run out of money, placed a key asset at risk and was about to conduct a deal with its bondholders that would be "perilous to shareholders".
Worldview had already warned it would take "all legal steps" to halt the company's plans.
Officially, the request has been filed by Vidacos Nominees Ltd, of which Worldview is the beneficial owner. According to the company Thursday, Vidacos holds a 26.5% stake in Petroceltic.
At the start of July, Worldview opened a new chapter in its ongoing battle with the management and board of Petroceltic over the company's plans to pledge its "crown jewel" asset as security for a USD175 million bond issue.
Worldview had claimed Petroceltic had "run out of money" and therefore was placing its key asset, the Ain Tsila gas condensate field in Algeria, as security for the proposed bond issue, which Worldview described as "perilous to shareholders".
Worldview suggested that the company's bondholders would eventually secure the "world-class asset for a derisory sum".
Petroceltic plans to issue the bonds without shareholder approval, which Worldview called "an abuse of the unfettered borrowing powers" of the company and "poor corporate governance by the board".
At the time of that announcement, Petroceltic responded by stating the bond issue would comply with all regulations and that it had been open about the deal with its shareholders.
On Thursday, Petroceltic said it was taking legal advice in relation to the requisition made by Worldview.
That battle followed on from a previous requisition made by Worldivew for an EGM earlier this year to try to try to oust Chief Executive Brian O'Cathain, a move which failed after shareholders narrowly supported O'Cathain.
Petroceltic shares were untraded on Thursday morning, last trading at 90.00 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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