Debt laden Trinity Exploration & Production PLC (LON:TRIN) told investors that its subsidiaries have filed for bankruptcy protection in Trinidad.
In a stock market statement it announced that it has filed a notice of intention to make a proposal to its creditors under the Trinidad and Tobago Bankruptcy and Insolvency Act (BIA).
“The BIA allows a company to continue operating while it submits its proposal to reach a settlement with its outstanding creditors,” it said.
“The filing of the NOIs 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 with any subsidiary by reason only that such subsidiary is insolvent or that a notice of intention or proposal has been filed.”
Trinity added that it believes that the step would provide the “most efficient and orderly” route to the group concluding a restructuring process with potential funders to the benefit of all stakeholders.
“The company continues to pursue a wider financial restructuring solution and will issue further announcements as appropriate,” it said.