Hurricane Energy plc, the UK based oil and gas company, announced on June 28 the results of the sanction hearing (the 'Sanction Hearing') of the High Court of Justice of England and Wales (the 'Court') in relation to the restructuring plan proposed by the Company under Part 26A of the Companies Act 2006 as set out at Appendix F of the explanatory statement dated 24 May 2021 in relation to the Restructuring Plan (the 'Restructuring Plan'). (Logo quoted from Yahoo’s image)
The Sanction Hearing was convened on 21 June 2021 at 2:00 p.m. and concluded on 23 June 2021. Judgment was reserved and was handed down today, 28 June 2021.
The Court has not sanctioned the Restructuring Plan. A copy of the sealed court order will be published on the Company's website at www.hurricaneenergy.com once received .
The existing Hurricane board is considering all options, including an appeal. Unless the Company or the Ad Hoc Committee successfully appeals the judgment, the Restructuring Plan will not be implemented. The Company's convertible bondholders have certain rights under the terms of the convertible bonds which, if enforced, could result in an acceleration of the convertible bonds and ultimately an insolvent liquidation of the Company. As a result there is a significant risk of no value being returned to shareholders.
The Company notes that a number of its shareholders have indicated that they were not supportive of the Restructuring Plan and, as a result, have indicated an intention to vote against the re-election of those Directors of the Company that are standing for re-election at the upcoming AGM on 30 June 2021 and/or to vote in favour of resolutions proposed by Crystal Amber Fund Limited to remove all of the non-executive Directors of the Company at the upcoming EGM on 5 July 2021.
It is the Company's understanding that, in the event all of the Executive Directors are removed from the Board, the Company's Nominated Adviser is likely to resign with immediate effect. This is likely to have the result that the shares of the Company are suspended from trading and, if a replacement Nominated Adviser is not in place within a period of one month, it may result in the shares of the Company being delisted from AIM.