PA Resources AB's board of directors, as a result of a perceived lack of progress in the negotiations with its creditors, has decided to seek protection from creditors by filing an application to the Stockholm District Court for a company reorganization.
Over the past few months, PA Resources has been in discussions with its creditors regarding a capital restructuring to establish a long term financing plan for the company. During the course of this process, the company has requested and has been granted deferral of interest payments by its principal creditors on two occasions.
On March 24, PA Resources summoned a new bondholders’ meeting and initiated a new written procedure, respectively, for the company’s NOK and SEK denominated bonds to be held on March 31. The bondholders' meetings were summoned to request a further deferral of interest and principal due in respect of the bonds until April 30.
As a result of a perceived lack of progress in the negotiations with its creditors in the past few days, the company’s board of directors is no longer confident in the ability to reach an agreement with all parties in the near term. In light of this, the board has decided to seek protection from creditors by filing an application to the Stockholm District Court for a company reorganization. The purpose of the application for the company reorganization is to provide flexibility to enable the company to achieve an effective restructuring solution for its stakeholders. The board of directors continues to believe that a long-term financing plan can be agreed upon.
The company reorganization process will only include PA Resources AB and not its subsidiaries. The company will continue to trade during the reorganization, and the reorganization is not expected to impact the operations in its subsidiaries.
In the filing to the district court, attorney Lars Söderqvist of the law firm Hökerberg & Söderqvist Advokatbyrå KB has been proposed as the court appointed administrator.
PA Resources AB (OSE:PAR)(STO:PAR) is an international oil and gas group that conducts exploration, development, and production of oil and gas assets. The Group operates in Tunisia, Republic of Congo (Brazzaville), Equatorial Guinea, the UK, Denmark, the Netherlands, and Germany. PA Resources is producing oil in West Africa and North Africa. Its parent company is located in Stockholm, Sweden.