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10. What will happen to XER?

The Principal Bondholders have confirmed that their current intention is:

a)             not to enforce their security over XER; and

b)             to allow XER to continue to trade as a going concern,

but have reserved their rights to take enforcement action against XER in the future.

The group’s material assets are the licences held by XER.  In the event that XER becomes subject to an insolvency process those licences may be revoked resulting in little or no value being available to XEL’s stakeholders.  By maintaining the licences the liquidators will be able to maximise realisations from the group’s assets.

In that regard, once appointed, the liquidators will have a duty to maximise value for all creditors of XEL.  This may be through a sale of XEL's shares in XER or some other means.  This is a matter within the liquidators' discretion.


Published : Monday, November 28, 2016 5:52 PM UTC