Star Phoenix Group Ltd Completion of debt restructure and RRTL sale (5856I)
April 02 2020 - 6:40AM
UK Regulatory
TIDMSTA
RNS Number : 5856I
Star Phoenix Group Ltd
02 April 2020
Star Phoenix Group Ltd
("Star Phoenix" or "the Company")
2 April 2020
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY
THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER
THE MARKET ABUSE REGULATIONS (EU) NO. 596/2014 ("MAR"). UPON THE
PUBLICATION OF THIS ANNOUNCEMENT VIA REGULATORY INFORMATION SERVICE
("RIS"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE
PUBLIC DOMAIN.
COMPLETION OF DEBT RESTRUCTURE AND RRTL SALE
Star Phoenix (AIM: STA), an international company with oilfield
services business in Trinidad and oil and gas interest in
Indonesia, is pleased to announce that the sale of Range Resources
Trinidad Limited ("RRTL") to LandOcean Energy Services Co., Ltd.
("LandOcean") has completed (the "Transaction").
Following completion of the Transaction, all of the Company's
debt and payables (US$95.1 million as at 31 March 2020) to
LandOcean have been offset and repaid, and all debt agreements with
LandOcean have been terminated.
In addition, as previously announced LandOcean has paid the
Company a total cash consideration of US$1,508,000 to date, which
has now been released to the Company. The rigs previously mortgaged
to LandOcean have also been discharged and released.
The Company and LandOcean have agreed that the remaining
US$1,000,000, plus an interest rate of 8% per annum, calculated
daily from 31 March 2020 until the payment is received, will be
paid on or before 30 April 2020 (the "Final Payment"). Until the
Final Payment is received (the "Post Completion Period"), LandOcean
has agreed to ensure that RRTL will continue to carry on its
business in the normal course of business, there will be no change
of directors of RRTL. During the Post Completion Period, all
profits and interim payables (including net revenue from the sale
of oil) of RRTL, received by RRTL will be paid to the Company.
Following disposal of RRTL, which held all of the Company's oil
and gas interests in Trinidad, the Company's residual business
comprises oilfield services in Trinidad with 12 onshore land rigs
valued by an independent party Shanghai Orient Appraisal Co., Ltd.
in February 2020 at US$21.8 million, as well as an interest in the
oil and gas project in Indonesia.
As part of a wider restructuring, the Company continues to
evaluate new strategic business opportunities and to review options
with regards to its rigs business and its Indonesia interest.
At the date of this announcement, the Company has nil debt and
unrestricted cash of approximately US$2.9 million.
Star Phoenix's Chairman, Kerry Gu, commented:
"I am delighted with the completion of debt restructuring, which
required months of hard work and extensive negotiations,
particularly in consideration of very challenging economic
conditions and a downturn in the oil and gas sector.
Completion of this milestone transaction is a fantastic outcome
for the Company's shareholders as it places Star Phoenix in a very
advantageous position, completely debt-free, with healthy cash
balance, and sufficient cash resources to progress with new
opportunities.
Over the coming months, our focus will be on reviewing options
for our drilling business in Trinidad and the Indonesian oil and
gas project, introducing cost-cutting measures across the Group and
streamlining the residual operations. We also continue to evaluate
new strategic business opportunities.
I am very excited about the future of Star Phoenix and once
again would like to thank our stakeholders for their continued
support during this process."
This announcement has been approved by Chairman Kerry Gu on
behalf of the Company.
Contact Details
Cantor Fitzgerald Europe (Nominated
Star Phoenix Group Ltd Adviser and Broker)
Evgenia Bezruchko (Group Corporate David Porter / Rick Thompson (Corporate
Development Manager & Joint Company Finance)
Secretary) t. +44 (0)20 7894 7000
e. admin@starphoenixgroup.com
t. +44 (0)20 3865 8430
This information is provided by RNS, the news service of the
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END
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