PetroNeft Resources’ biggest shareholder Natlata has offered to pay off a bank loan owed by the firm, as it seeks to remove the majority of its board.
The investment company, which owns more than 10% shares in the Russian-focused explorer, is seeking the company’s “unconditional approval” of a transfer of $11million (£6.7million) owed to Macquarie Bank Limited, to have the loan converted into ordinary shares, due by April 15.
It has also proposed to issue up to $10million of shares to its shareholders, at £0.055 per share.
If PetroNeft was to accept the financing deal, it would be required to stage an emergency general meeting, which Natlata has called for earlier this week in a bid to overturn the company’s board of directors.
“The proposed transactions will reduce the company’s leverage, improve its financials, reduce the risks of default and bankruptcy, and release significant cash flows for the 2014 capex programme,” said Maxim Korobov, Natlata’s controlling shareholder.
“We are not only offering a financial solution but have spent a considerable amount of time putting in place a plan that will finally realise Petroneft’s true value.
“If positive action is not taken we believe that the share price will retreat to its mid-2013 levels on continued stagnation of production and the increased risk of losing one of the Company’s main assets under the newly arranged financial restructuring terms.”
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