Ascent petition prevents insolvency of partner Geoenergo

Energy and natural resources company Ascent Resources updated the market on recent developments related to its joint venture partner Geoenergo on Monday.

The AIM-traded firm said that, after petitions from Ascent Slovenia, the relevant court declined to approve Geoenergo's application for self-declared insolvency.

In response to Geoenergo's initial application for insolvency, Ascent said it quickly filed petitions with the court, asserting that the move represented an improper use of the insolvency system by a financially solvent company.

Ascent said it argued that Geoenergo had not engaged in meaningful discussions with them, its primary creditor, to explore potential alternatives that could prevent insolvency, such as reaching a settlement or transferring ownership of Geoenergo or its assets to Ascent Resources.

The court acknowledged Ascent Resources' position as a creditor, and subsequently rejected Geoenergo's self-declared insolvency application.

A hearing was scheduled for 23 February to further examine the matter.

As a result of the decision, Geoenergo remained a solvent entity, with no administrator appointed.

Ascent said it intended to continue its efforts to engage in constructive discussions with its joint venture partner, with the aim of finding a mutually beneficial resolution to the ongoing financial challenges.

At 1332 GMT, shares in Ascent Resources were up 2.19% at 2.81p.

Reporting by Josh White for Sharecast.com.