With respect to the announcement by the Company on March 28, 2014 of its receipt of the various signature pages to the restructuring support agreement relating to the 10% Senior Notes due 2014 (the “Senior Notes RSA”), the restructuring support agreement relating to the convertible preferred shares of an affiliate of the Company and involving claims against the Company (the “Preferred Obligations RSA”), and the commitment letter from Heng Rui Xin Energy (HK) Co., Limited (“HRX”) relating to the interim financing by the Company up to an aggregate principal amount of US$14 million (the “Interim Financing”), the Cayman Court sanctioned each of them at a hearing on April 2, 2014 (the “Sanction Hearing”).
Initially, following the Sanction Hearing, the JPLs encountered delays in obtaining the full amount of the Interim Financing. To date, however, the JPLs have received an aggregate of US$10.8 million in Interim Financing through a combination of HRX advances and internally generated funds from the Company.
The Interim Financing received to date is sufficient to enable the restructuring to continue to be progressed, although further funding is required to complete the restructuring. The JPLs are working with their advisors and the Company’s management to pursue a number of potential options to raise the funding required to meet the agreed commitments under the Senior Notes RSA and the Preferred Obligations RSA, as well as the costs of the offshore restructuring process and the forecasted offshore working capital requirements of the Company (the “Exit Financing”).
The JPLs, supported by their advisors and the Company, continue to consider and progress discussions with a number of parties in respect of the Exit Financing and remain hopeful that commitments for the Exit Financing can be secured in the near term. The JPLs will seek binding commitments for the Exit Financing prior to applying to the Cayman Court for orders convening meetings of creditors to ensure that the offshore restructuring can be successfully completed. Any delays in raising the Exit Financing will impact the timetable for the completion of the offshore restructuring.
A further update will be provided once the Exit Financing discussions have been concluded and the JPLs are in a position to proceed with applying to the Cayman Court for orders convening meetings of creditors in relation to the offshore restructuring.