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  • 6. How are the Bondholders able to appoint a liquidator to the Company when the Bonds were issued by Xcite Energy Resources plc ("XER")?

6. How are the Bondholders able to appoint a liquidator to the Company when the Bonds were issued by Xcite Energy Resources plc ("XER")?

As a condition to the provision of finance, the Company guaranteed XER's obligations under the Bond Agreement in 2014.  It also provided security in favour of the Bond Trustee including a share charge over the shares in XER, a floating charge over the assets of the Company and a security assignment over the intra-group loan owing by XER to the Company.

Following maturity of the Bonds on 31 October 2016, the Bond Trustee made a demand under the guarantee provided by the Company demanding the immediate repayment of all outstanding Bonds (and all accrued interest thereon).  The Company was not in a position to repay the Bonds following receipt of that demand.  Consequently, on instruction from the Bondholders, the Bond Trustee presented a petition to the Court in the British Virgin Islands requesting the appointment of a liquidator to the Company (the "Proposed Liquidation").

 

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