UK independent producer IOG is placing itself into administration to preserve the value of the business for its creditors, it said September 28. The decision follows its “extensive consideration” of its finances following underperformance of the developed assets and the resulting creditor position. It advised that its shares would cease trading in the early afternoon.
The existing bond waiver expires on September 29 and IOG has talked with a group of senior secured bondholders and their advisors regarding a further additional capital injection and associated restructuring. Discussions are intended to continue with a view to a potential restructuring solution that protects the operating subsidiaries, which are not being placed into administration.
Expressing deep disappointment and thanking all concerned, IOG chair Esa Ikaheimonen said that after having exhaustively worked to overcome the company’s financial circumstances and not found a viable solution, the decision was inevitable.
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