One of Circle Oil’s creditor has called time on its loan.
Circle Link has called its $20million loan plus interest, stating a default has occurred under the convertible loan agreement.
The repayment is due on November 15.
As at 30 June 2016, the Circle Oil held cash and cash equivalents of $7.3million and had debt of $77.5million.
A company spokesperson said: “Circle is continuing to discuss its position with Circle Link and with the International Finance Corporation, as principal lender on its reserve based lending facility, in an effort to identify a way forward in the very near future that will allow the Company to complete the Strategic Review process announced in March 2016.
“The Strategic Review process remains ongoing and further updates will be provided as appropriate.”
