Following the announcement of the troubled oil and gas company Xcite Energy Limited on discussing the deal after which creditors would take under control 98.5% of its share capital, the principal shareholders moved to company’s liquidation. Being not satisfied with the transaction that would have significantly diluted their interests, the shareholders instructed the bond trustee to petition the court in the British Virgin Islands, where Xcite is domiciled, within the next 10 days to request the appointment of a liquidator to the company. The appointment of the liquidator will take effect 4 to 6 weeks from the filling of such request.
As it is expected that the liquidation is unlikely to result in the return of any value to the existing shareholders of the BVI company, its ordinary shares have been suspended on the Alternative Investment Market (AIM).
Xcite Energy Resources Plc will not be subject to enforcement action, and will remain a going concern throughout the process.