Circle Oil PLC based in County Limerick Ireland, has gone into voluntary liquidation earlier this week.
PwC Ireland have been appointed liquidators to the company which previously had a net worth of €231 million. In addition to this, following an extraordinary meeting in the Gresham Hotel Dublin, documents have been submitted by PwC Ireland to the Companies Registration Office announcing the resignation of Circle Oil PLC companies directors.
Creditors have been advised to send particulars of their debts and claims to PwC by October 31 next, as the company is being voluntarily wound up.
In 2016, the company conducted a strategic review to put in place a “sustainable long term financing structure” for the business following a loss of €110 million in 2015.
At that time, Circle Oil PLC was considering options to reduce the companies debt and ensure it had sufficient funds for future operations. These options included a debt restructuring, a sale of some of its assets, but stressed that its financial position would remain under “significant pressure” given the infrequent and unpredictable payments from the Egyptian General Petroleum Corporation (EGPC).
“Oil and gas revenues were down by 54% to $38.95 million as a result of lower oil prices, a strengthening US dollar against the Moroccan Dirham and reduction in production in both Egypt and and Morocco,” stated Mr Jenkins.
Mr Jenkins said while the group had received a number of proposals, after taking into account the group’s debt position, the directors believed that it was now likely that there will be no value attributable to its equity holders.