The board of Sweden’s PA Resources has approved the balance sheet for liquidation purposes and will convene an extra general meeting (EGM).
In a press release dated January 20, 2015, PA Resources informed that a balance sheet for liquidation purposes would be prepared. The board of PA Resources has now approved the balance sheet for liquidation purposes. Net equity amounts to SEK 50 million ($6 million) which is below 50 per cent of the registered share capital. The company says that the board is therefore legally required to convene an extra general meeting of shareholders which will resolve whether or not the company will continue operations or go into liquidation. The board will issue notice to such general meeting of shareholders as soon as possible, the company said in the press release.
If the meeting resolves that the company will continue its operations the equity must be restored prior to another general meeting which is to be held within eight months after the initial meeting. Such an equity restoration is dependent upon a successful outcome of the on-going refinancing discussions with the company’s key stakeholders.