OILEXCO, the Canadian oil and gas company whose assets are held principally through its UK North Sea-focused subsidiary Oilexco North Sea (ONS), has said it has received demand letters from the Royal Bank of Scotland, on behalf of itself and other lenders, for immediate repayment of loans.
It said its lenders wanted repayment of all amounts outstanding under a £385million senior and super-senior credit facility and £100million pre-development credit facility of ONS. These were guaranteed by Oilexco when the finances were agreed.
As reported earlier, four joint administrators at Ernst and Young were appointed early last month to manage the affairs, business and property of ONS and have received many expressions of interest in acquiring the firm and its assets. Oilexco said it had, through a subsidiary, submitted a non-binding expression of interest to acquire certain assets of ONS.
It is expected that the sale of ONS will be concluded around the end of March. Oilexco said it had no way of predicting who the ultimate purchaser or purchasers would be, nor the value to be realised through the sale.