PA Resources publishes its reorganization plan

By Mark Reccek

Bethlehem, Pa., Sept. 9 – PA Resources AB published its reorganization plan, according to a Wednesday press release.

The plan includes the composition plan, estate inventory dated June 30, the administrator’s statement of support for the plan, a certification of at least 40% support from the creditors, as well as the administrator’s report, the release said.

According to the release, the plan includes the terms and conditions of the reorganization notes which were entered in June and take priority over all other claims on the company.

Specifically, the composition plan stipulates:

• Creditors with claims of up to and including SEK 100,000 are entitled to receive full payment no later than March 26, 2016;

• Creditors with claims in excess of SEK 100,000 and without a bilateral agreement with the company are entitled to receive SEK 100,000, as well 25% of their claim that exceeds SEK 100,000 by March 26. Alternatively, creditors have the option to join the group of creditors with repayment over a longer period of time; and

• The creditors with the largest claims have signed agreements with the company (or, in the case of the holders of the SEK and NOK bonds, will be invited to vote on changes to the terms and conditions of the bonds) in which they will be repaid over a longer period of time out of the available cash flow as defined by the plan.

According to the release, the company and administrators believe the creditors will likely receive less than 25% of their total claim. When all the available cash flow has been paid out, or at the latest on Dec. 27, 2017, the creditors have agreed to convert their outstanding claims to equity through an offset issue on the basis that regardless of the value of the claims the creditors will receive 95% of the company’s share capital after the conversion, meaning current shares of capital will likely not exceed 5% after the conversion of the outstanding claims.

Also included in the reorganization plan is the estate inventory of company assets and liabilities amounting to SEK 1,205,000,000 and liabilities amounting to SEK 2,016,000,000

The release also said the company has reached an agreement with creditors to apply for delisting of the company’s share from the Nasdaq OMX Stockholm exchange.

The company indicated it plans to submit a request for composition proceedings to the Stockholm District Court. The court is expected to respond to the request shortly and set a date for the composition proceedings.

PA Resources is an oil and gas company based in Stockholm.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.