North Sea gas developer IOG plc has appointed administrators while its nominated adviser and broker resigned leaving a threat to cancellation of its shares trading on AIM.
NEGOTIATIONS
The company operates the Saturn Banks project in the southern North Sea as well as incremental assets of P2442 and P2589 and prospects in undeveloped clusters.
Since 2022, IOG has had problems with rising costs, the Blythe H2 well and since June 2023 has agreed successive waivers to repay postponed interest under a €100 million senior secured bond.
The company today said that joint administrators Chad Griffin and Ian Corfield of FRP Advisory will evaluate the company’s position and are in talks with senior secured bondholders and other creditors to consider “all available options”.
These include a potential restructuring to protect the operating subsidiaries not in administration.
“As a result of the administration, Cavendish Capital Markets Limited and Peel Hunt LLP have informed the company of their resignations from their roles as nominated adviser and broker respectively, with immediate effect,” added IOG.
“The company’s shares remain suspended from trading and pursuant to AIM Rule 1, if a replacement nominated adviser is not appointed within one month, the admission of the company’s shares to trading on AIM will be cancelled.
“The company has no current intention of appointing a replacement nominated adviser.”