Review re rejected restructuring plan of mid-2021

RNS Number : 1197W

Hurricane Energy PLC

20 December 2021

 

20 December 2021

Hurricane Energy plc

("Hurricane" or the "Company")

Review of events leading up to the rejected restructuring plan of mid-2021

Hurricane Energy plc, the UK based oil and gas company, announces the completion of a review, led by the non-executive directors of the Company (the "NEDs"), of the events leading up to the restructuring plan (the "Plan") being rejected by the Court on 28 June 2021, including decisions made by the Company's previous board on its U.S.$230,000,000 7.50 per cent. Convertible Bonds due 2022 (the "Bonds") and the Plan.

The review, having been requested by some shareholders, was overseen by the NEDs and carried out by an independent solicitor assisted by leading counsel.  The NEDs have concluded that the Company's previous board discharged their fiduciary duties diligently and in good faith during this time to address the fact that there was projected to be a significant shortfall upon maturity of the Bonds, and they received extensive advice from outside professionals on whom the Company's previous board could and did properly rely.

It has been suggested by some shareholders that an earlier tender offer for the Bonds would have been in the best interests of the Company. During the period of engagement with bondholders and other stakeholders, the Company concluded that it was important to preserve cash to keep open the possibility of investing in a remedial plan which would benefit all stakeholders. Once the Plan was rejected (in which it was concluded that no investment in remedial works would be possible without bondholder consent), the Company carried out a tender offer for the Bonds. As announced on 8 December 2021, 10 December 2021 and 15 December 2021, the Group has continued to carry out repurchases of the Bonds where opportunities to do so on attractive terms have arisen.

The NEDs have agreed that no further action is necessary and believe that time and resources should now be spent on maximising the future revenue and potential of the Company. Every effort is being made to repay the Bonds at maturity, to give due and proper consideration to the interests of other stakeholders and to increase value attributable to shareholders.

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Contacts: 

Hurricane Energy plc Antony Maris, Chief Executive Officer [e-mail]	[phone]
Stifel Nicolaus Europe Limited Nominated Adviser & Joint Corporate Broker Callum Stewart / Jason Grossman	[phone]
Investec Bank plc Joint Corporate Broker Chris Sim / Jarrett Silver	[phone]
Vigo Consulting Public Relations Patrick d'Ancona / Ben Simons [e-mail]	[phone]

About Hurricane

Hurricane has a 100% interest in and operates the Lancaster field, the UK's first field to produce from a fractured basement reservoir.

Hurricane also has a 50% interest in the Greater Warwick Area licence, which contains the Lincoln and Warwick assets.

Visit Hurricane's website at www.hurricaneenergy.com

 

Inside Information

This announcement does not contain inside information.

 

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