Circle Oil’s debt obligations means the result of its ongoing strategic review is likely to lead to “little or no value” for its shareholders it confirmed.
The firm is relying on the support from creditors as the company seeks a more stable and consistent payment system from Egypt’s state-owned oil company, which purchases the London-listed oil company’s production.
The company launched a strategic review and is considering all options, and the most recent extension to its debt expires on May 27.
Circle Oil said there is likely to be little or no value for its shareholders because of the amount of debt it has.
The company has $77.5 million worth of outstanding debt and has a market capitalisation of $11.3 million.
“To date the company has received a number of indicative proposals, which are in the process of being evaluated, and is working to conclude the Strategic Review Process as expediently as possible,” the company said.
Circle Oil reiterated it is looking at all the options available, including the potential to merge or sell the company, restructure its debt or possibly conducting a subscription for new shares in the company.
Recommended for you
