Capricorn Energy plc has engaged English and Norwegian counsel after its Columbus field partner Waldorf UK plc announced plans to restructure.
ADMINISTRATION
The company is awaiting the overdue final US$22.5 million settlement payment relating to the UK central North Sea asset.
Capricorn today said: “Under Waldorf’s plan, certain amendments will be made to the terms of its bonds; and the compromise of certain liabilities owed to Capricorn in exchange for consideration consisting of: (a) a cash payment of 5% of the outstanding liability; and (b) certain “upside-sharing payments” after Waldorf’s secured creditors have been paid.”
The company added it was considering all options available to it.
Waldorf said it aimed to complete the restructure as soon as possible, and no later than May 2025. The company will also “continue working with all relevant key stakeholders”.
Waldorf Production Ltd, in which Waldorf Energy Partners Ltd owns 75% or more shares, entered administration on 12 June 2024.
The following month the administrators began a sales process which led to non-binding offers in September 2024.
The administrators’ progress report published on 6 January 2025 states that “reconfirmed bids” had been recently received.
“Several bidders will enter the next phase of the process with a view to the administrators negotiating sale and purchase agreements,” added the report.
Any sale needs the approval of the secured creditor and the North Sea Transition Authority.
The administrators also seek to extend the administration period, due to end on 11 June 2025, by a further 12 months.