Nu-Oil and Gas PLC (LON:NUOG) told investors it has returned the equity it held in Enegi Oil Inc to Enegi with immediate effect, as it continues to execute the restructuring plan laid out earlier this month.
In early October, the company revealed that C4 Energy Ltd had acquired £2.5mln worth of debt previously issued to Shard Capital and its shareholders - which include former Aminex chief executive Jay Bhattacherjee – would participate in a £500,000 placing to provide short-term working capital.
Additionally, post-acquisition, Nu will issue C4 with new loan notes that carry equity conversion rights priced at 0.05p giving it the opportunity to acquire up to 29.9% of the company.
Bhattacherjee is joining the company as non-executive chairman-elect along with fellow C4 shareholder Andrew Dennan. Nu-Oil’s executive agreed to resign, while executive chairman Graham Scotton moves to a non-executive role.
The company revealed that it would exit is marginal field venture in the North Sea, agreeing to sell its 50% stake in MFDevCo to its partner RMRI Limited, a vehicle tied to former chief executive Alan Minty, in exchange for the release of Nu’s £1.3mln debt to RMRI.
Immediately, the company put all aspects of the remaining company under review.
Today, the company informed investors that it was returning the Enegi equity under the terms of RSNL1990 CHAPTER C-36 CORPORATIONS ACT, in Newfoundland, Canada, which allows an investor to donate its holdings in a company back to the company in question at no charge to the company.
As result, the company highlighted that Nu-Oil will have no further claim or call on Enegi and, furthermore, it restricts the recourse to Nu-Oil of potential claims made against Enegi.