Xcite Energy enjoyed a small share price recovery after it agreed a deal with owners of its £100million debt pile.
The North Sea explorers’ shares closed 85% higher to 2.22p on Friday despite the agreement with bond holders set to nearly wipe out shareholders’ value in the firm.
Yesterday, Xcite said 100% of the value of the outstanding bonds – worth $135million (£104million) would be exchanged for 98.5% of the enlarged share capital of the company. The firm said its proposals were approved unanimously.
Xcite, which is headquartered in Surrey, but has its operations base in Aberdeen, has been struggling to sort out its finances to support its flagship Bentley project in the UK North Sea. The company has been in negotiations with its lends since December.