Petroceltic and Worldview renew feud over bond issue

Upstream oil and gas explorer Petroceltic said it has received a letter from its largest shareholder Worldview Capital Management Ltd. demanding an extraordinary general meeting.

Earlier this month, Worldview claimed that the London-listed group had run out of money, jeopardised a key asset and was on the verge of entering a deal with its bondholders that would be "perilous to shareholders", adding it would take "all legal steps" to halt the Petroceltic's plans.

The dispute centres on Worldview claims Petroceltic had chosen to place its "crown jewel", the Ain Tsila gas condensate field in Algeria, as security for a proposed $175m bond issue, prompting Worldview to suggest that the company's bondholders would eventually purchase the "world-class asset for a derisory sum".

Petroceltic said it planned to issue the bonds without shareholder approval, which Worldview described as "an abuse of the unfettered borrowing powers and poor corporate governance by the board".

However, the London-listed company hit back by claiming the bond issue would comply with all regulations and that it had disclosed the deal to its shareholders.

On Thursday, Petroceltic said it was in the process of receiving legal advice in relation to the requisition made by Worldview, as the long-standing feud seems destined to drag on.

The request for an extraordinary general meeting has been officially filed by Vidacos Nominees Ltd, which holds a 26.5% stake in Petroceltic, and of which Worldview is the beneficial owner.

Petroceltic shares were down 4.44% to 86.00p at 10:58 on Thursday.