London-listed Trinity Exploration and Production, an independent E&P with offshore and onshore assets in Trinidad and Tobago, might be forced to pay its $13 million debt, as its lenders would not provide further extensions to the payment deadline.
Namely, following numerous extensions to the moratorium on principal payments to Citibank, while at the same time working on its restructuring, Trinity on Wednesday said it couldn’t agree on a further extension with the lender.
“Despite the company’s positive attempts at pursuing specific wider restructuring initiatives, the Company has now been unable to agree suitable terms with Citibank with regard to the existing and potential future moratorium terms and as such the Company finds itself no longer in a moratorium,” Trinity Exploration said in a statement.
Furthermore, the company said, as the last moratorium expired, Citibank has now put restricted access on Trinity’s Citibank accounts making the company unable to fund its working capital position in a timely manner “as it actively pursues a wider restructuring solution.”
Following the suspension of the moratorium, the amounts owed from the company to Citibank are now due and payable.
As a result, the company on Wednesday requested a suspension of trading of its shares pending clarification of its financial position.
“The company’s ordinary shares will remain suspended from trading on AIM until such time as Citibank advise the Company on how they would like to proceed, as the senior secured creditor, or a wider restructuring solution can be agreed,” Trinity Exploration and Production said.
Offshore Energy Today Staff