Shares of North Sea oil firm Xcite Energy were suspended on Tuesday “pending clarification of the company’s financial position” after it said its principal bondholders rejected a plan to exchange the value of outstanding bonds for 98.5% of the enlarged share capital of the firm.  

“Bondholders have informed the company that they are not satisfied that the transaction is capable of being implemented in a manner acceptable to them,” said Xcite.

“On this basis, they expect to instruct the bond trustee to petition the court in the British Virgin Islands within the next 10 days requesting the appointment of a liquidator to the company, which is expected to take effect approximately four to six weeks from the filing of such request.”

Xcite holds and operates 100% of the Bentley field located in the East Shetland Platform in the UK Northern North Sea.

Xcite has its operations office in Aberdeen, corporate office in Surrey, and registered office in the British Virgin Islands.

Its share price and market capitalization have collapsed in recent years.

Xcite said liquidation is “unlikely to result in the return of any value to the company’s existing shareholders.”

Xcite added that the principal bondholders and the proposed liquidator have confirmed that Xcite Energy Resources Plc (XER) and its assets are not expected to be the subject of enforcement action and that XER is expected to remain a going concern throughout this process.