Iona Energy U.K. units face insolvency; all company directors resign

By Caroline Salls

Pittsburgh, Nov. 24 – Iona Energy Inc. said it is “highly likely” that its wholly owned U.K. subsidiaries, Iona Energy (UK) Co. plc and Iona UK Huntington Ltd. will begin insolvency procedures to protect the interests of all stakeholders.

According to a news release, all of Iona’s directors have resigned, and trading in the company’s shares on the TSX Venture Exchange will be suspended. At this time Tom Reynolds and Iain McKendrick will remain as directors of the U.K. subsidiaries in an attempt to maximize value for all creditors.

Given the level of senior secured debt owed by Iona Energy (UK) under its bonds and the concentration of Iona’s assets in Iona Energy (UK), the company said it is highly unlikely that there will be any residual value for shareholders following any insolvency process.

Iona is a Calgary, Alta., oil and gas company with assets in the United Kingdom’s North Sea.

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