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PA Resources bond trustees seek funding for tax deficit evaluation
By Caroline Salls
Pittsburgh, July 19 – The trustees for PA Resources AB’s 13½% senior unsecured fixed-rate bond issue 2013/2016 and 12¼% senior unsecured callable bond 2011/2016 are seeking bondholders who may be interested in providing funding to perform a further tax deficit evaluation and to possibly reverse the formal liquidation process to allow the company to fund and be in a position to perform an equitization.
According to a notice released Wednesday, interested bondholders should contact NOK bond trustee Nordic Trustee ASA or SEK bond trustee Nordic Trustee & Agency AB before Aug. 31.
The trustees said an equitization mechanism provides that resulting residual bond claims will be converted to equity in PA Resources on specified conditions.
The trustees have been informed that some bondholders have sought to explore if any values could be realized from the accumulated tax deficit of the company, the release said.
However, according to PA Resources’ liquidator, any potential value is at best highly uncertain, and the company does not have any available liquidity to perform further evaluation into any possible value realization.
The liquidator also informed the trustees that PA Resources lacks sufficient funds for the equitization process unless additional funds are provided.
If no funding is offered by the bondholders before the deadline and provided before the completion of the liquidation process, or if the company becomes bankrupt under Swedish bankruptcy laws, the trustees said the tax deficit may have to be written off and the equitization will not be carried because of a lack of funds.
PA Resources is an oil and gas company based in Stockholm.
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