Trading of Max Petroleum ordinary shares are due to be cancelled from the London Stock Exchange amid uncertainty over the company’s financial future.
Max Petroleum has thrown a financial lifeline to its Kazakhstan subsidiary Samek International.
Max Petroleum said its operations are continuing despite suspension of its trading in ordinary shares two months ago. The company said positive discussions have been taking place in respect of appropriate debt restructuring with Aberbank and an equity investment from AGR Energy. A spokesman said in addition to a debt restructuring and equity investment, the company also requires bridge financing to ensure it remains viable for the period until the regulatory and other approvals can be put in place.
Max Petroleum said it could become insolvent without debt restructuring and additional financing. The company said the fall in oil price has had a “very severe” impact on the company’s forecast liquidity position for the year ahead. As a result its business had been rendered unviable unless further material investment is made into the company.