Insolvency & Restructuring in the Energy & Resources sector

Businesses in the Energy & Resources sector often require significant capital investment but with financial returns dependent on market movements and uncertainties of an exploration or development process.

This can leave businesses in the sector exposed to the risk of insolvency. This is a threat for stakeholders in the businesses but can offer an opportunity for parties interested in acquiring distressed assets.

If financial difficulties do arise, specific issues are posed by the multi-jurisdictional nature of many businesses in this sector, the heavy involvement of capital markets in the sector and industry norms.

To address these concerns for our clients Fladgate has structured a team of specialists from a range of backgrounds who can come together and offer a complete legal solution to the issues raised.

Some of the areas of legal advice covered are:

  • Representing buyers of distressed energy and resource assets
  • Advice on strategic options open to directors or stakeholder of distressed businesses
  • Emergency public or private company fundraisings, asset disposals or corporate restructurings
  • Acting for insolvency practitioners appointed as administrators or other insolvency office holders
  • Planning transactions where insolvency risks are feared
  • Asset recovery, fraud, breach of duty or other litigation proceedings

If you have any questions or queries please call Jeremy on +44 (0)20 3036 7377 or email jwhiteson@fladgate.com

If you have any questions or queries please call Bree on +44 (0)20 3036 7220 or email btaylor@fladgate.com

“The practice provides ‘responsive and clear advice’ across a range of restructuring and insolvency matters.”

Legal 500 2016
 
  • Acting for Pan African Resources PLC the proposed purchase of the mining assets of ASA Resources Group PLC from its administrators- Mark Skelton and Trevor Birch of Duff and Phelps and Richard Fleming of Alvarez and Marsal. The assets were based in Zimbabwe and Democratic Republic of Congo. A sale contract for the companies holding the target assets was signed on 23 January 2018 subject to certain escrow conditions. However, Pan African Resources opted to not proceed with the transaction.
  • Advising boards of directors on duties in insolvency situations
  • Advising Sattar Abdullah (Grant Thornton Mauritius) as prospective administrator of a company who, with subsidiaries, operate an African oil business. The deal would involve a pre-pack of the business to a buyer after satisfaction of conditions.
  • Advising Cantor Fitzgerald and GMP as joint nominated adviser and broker on the purchase by SDX Energy (SDX) of certain subsidiaries of Circle Oil Jersey (Circle), immediately after Circle had been placed into administration. SDX is an Egypt focussed oil and gas company. The subsidiaries acquired from Circle together held a portfolio of oil and gas producing assets in Egypt and Morocco.