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Challenger Energy Group Plc seeks debt-free financial footing

() saw its shares fall on Monday as interim financial results confirmed the explorer requires recapitalisation and is working to negotiate creditor settlements.

The company, formerly known as Bahamas Petroleum, said it had US$3mln of cash resources at the end of October and it needs at least US$15mln of new funds to meet its obligations as they fall due over the coming twelve months.

Specifically, results for the six months ended June 30, noted that some US$10.1mln of invoices related to the unsuccessful Perseverance-1 well still needed to be paid, and it had a further US$3.5mln due to various suppliers in Trinidad and Tobago – it said that the latter in-country creditor balances are largely being managed within agreed payment deferrals and payment plans, they are owed by various Trinidadian subsidiaries and are not guaranteed by the company).

A further US$6.5mln is described as ‘representing the full amount of various legacy licencing and other payables in Trinidad and Tobago’ and the company said that they are owed by subsidiaries, not guaranteed by the company, and portions of those amounts are disputed – and some US$4.5mln can be avoided by the forfeiture of certain non-productive assets).

Read More: Challenger Energy Group Plc seeks debt-free financial footing

2021-11-05 10:07:00

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