G3 Exploration Ltd (LON:G3E) is to request provisional rather than official liquidators be appointed to give the China-focused gas group a period to restructure its businesses to pay off its creditors.
A petition was served in Grand Cayman recently by lender Nordic Trustees for an official liquidator to be appointed.
That hearing is set for 11 December, but G3 believes a better solution is to for a joint provisional liquidator (JPL) to be appointed, which would allow it to focus on 'identifying, facilitating and executing a comprehensive restructuring plan'.
G3 wants to arrange either a Reserve Based Loan U$$200m through its producing assets or else sell off enough of these to pay off its creditors and refinance the rest of the business.
Randeep Grewal, G3’s chairman said in a statement: "Over the past two years, we have worked cooperatively, and constructively, with our secured creditors on each of our initiatives to repay the debt due and look forward to doing so with the JPL."
“We strongly encourage the appointment of JPLs so as to expedite a re-structuring of the company for the benefit of all stakeholders, which would enable the company to continue to deploy its technical expertise in the development of complex CBM reservoirs globally and continue as a going concern," he added.