Sequa Petroleum N.V. commences liquidation of its 100% Norwegian subsidiary (Tellus)
Sequa Petroleum N.V. (the "Company") today announces that consultation procedures with Tellus Petroleum AS ("Tellus") employee representatives have concluded and Tellus board and shareholder meetings have resolved to commence the Tellus liquidation process in accordance with the Norwegian Companies Act.
As stated in the Company's press release of 9 February 2017, the cessation of its business in Norway, now followed by the commencement of liquidation, constitutes under article 10 (g) of the Terms and Conditions of the Bonds a potential default of the Bonds.
The Company expects this potential default, together with the potential default related to the outstanding Q4 2016 Bond coupon as stated in the Company's press release of 14 November 2016, to be resolved with Sapinda's support as the Company understands that the required majority of the Bonds is held by Sapinda and affiliates.
While amounts received to date have not matched the timing or quantum requested, the Company currently expects to be able to draw sufficient funds from its convertible loan facilities with Sapinda Invest Sarl and Sapinda Asia Limited to enable it to continue to trade and complete the liquidation of Tellus.
The net funds expected from the repatriation of liquidated assets together with debt restructuring and possibly new equity and/or debt funds will enable the Company to progress selected high quality appropriately sized acquisition targets of production and development assets elsewhere that are value-accretive and provide cash flow.
Jacob Broekhuijsen, Chief Executive Officer
+44(0)203-728-4450 or [email protected]
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Source: Sequa Petroleum NV via Globenewswire