(MENAFN- ProactiveInvestors - UK) Liquidators are to be called in to deal with Xcite Energy Ltd (LON:XEL) and the undeveloped Bentley heavy oil field, in the North Sea, leaving shareholders with absolutely nothing.
Xcite had been working to finalise a debt-for-equity swap that would have given its bondholders 98.5% control of the business and its assets, but those efforts are now being wrapped up.
In a stock market statement Xcite told investors that principal Bondholders have informed the company that they're not satisfied the transaction is capable of being implemented in a manner that's acceptable to them.
It is now expected that bondholders will petition the appointment of a liquidator, which would take place 4-6 weeks from the filing with the British Virgin Islands court.
'On the basis of advice received by the company and the directors, the directors believe that liquidation is unlikely to result in the return of any value to the company's existing shareholders,' Xcite said.
Whilst the company noted that the bondholders and the proposed liquidator have confirmed that the London listed Plc won't be subject to an enforcement action, the company's directors have requested an immediate suspension to the trading of its shares.
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