Max Petroleum rockets on debt refinancing hopes
After its shares rocketed from their very low base on Thursday, Max Petroleum said it was confident of successfully refinancing the company's debts.
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Oil & Gas Producers
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15:45 15/11/24
The AIM-listed exploration and production tiddler confirmed the "reasonable prospect" that discussions with its bank and major shareholder would be successful but that it did not have much time before further creditor payments would be due.
"Max Petroleum continues negotiations with Sberbank regarding an appropriate debt restructuring and with AGR Energy regarding an equity investment that, together with the debt restructuring, would render the Company viable at current oil prices."
Management said the "reasonable prospect" of the discussions leading to a refinancing of the company had led them to hold back from putting the company into administration.
"However, in light of upcoming creditor payments, including a material amount that becomes due on 25 February 2015 to the Kazakh tax authorities and payable by early March 2015, there is only a short period remaining to achieve such a refinancing and if current efforts are unsuccessful then the consequences will be negative for all stakeholders in the company."