Subsidiaries of Trinity Exploration and Production, a debt-laden oil and gas company operating in Trinidad and Tobago, have filed for bankruptcy protection.
The subsidiaries in question are Trinity Exploration and Production (Trinidad and Tobago) Limited, Galeota Oilfield Services Limited, Trinity Exploration and Production (Galeota) Limited, Tabaquite Exploration & Production Company Limited, Trinity Exploration and Production (GOP) Limited, Trinity Exploration and Production (GOP-1B) Limited, Oilbelt Services Limited, Trinity Exploration and Production Services Limited and Ligo Ven Resources Limited.
According to a statement by Trinity, the subsidiaries have filed notices of intention to make a proposal to creditors under the Trinidad and Tobago Bankruptcy and Insolvency Act Chapter 9:70 (“BIA”).
The BIA allows a company to continue operating while it submits its proposal to reach a settlement with its outstanding creditors. The filing of the notices provides the subsidiaries with a stay of proceedings from all of their creditors and means that no person may terminate or amend an agreement or claim an accelerated payment under any agreement, Trinity said.
“Trinity believes that the subsidiaries making a proposal to creditors and benefiting from the stay on proceedings provides the most efficient and orderly route to concluding its restructuring negotiations with potential funders and securing a refinancing to the benefit of all stakeholders,” Trinity said on Wednesday.
The company said it continued to pursue a wider financial restructuring solution.
To remind, Trinity on July 27 agreed a new moratorium on principal repayments, relating to Trinity’s $13 million debt, with its senior secured lender, Citibank, until 15 August 2016. In addition, it was then agreed that the restricted access which Citibank had put on Trinity’s Citibank accounts would be removed.
However, on August 16, the company said it had sought a further agreement with Citibank to extend the Moratorium beyond August 15, 2016 to enable Trinity to try and negotiate and complete a wider financial restructuring.
The company received a proposal, late on August 15, from Citibank to extend the moratorium; however, Trinity said its directors believed that they needed to seek clarity on a number of issues outlined in the Citibank proposal.
“As a result, the Moratorium has technically lapsed, but the Directors are confident that these issues can be resolved and that the proposed extension to the Moratorium can be agreed,“ Trinity said on Tuesday. What followed was the news on Wednesday that Trinity’s subsidiaries filed for bankruptcy protection.
Offshore Energy Today Staff