Circle Oil plc warned Friday that there could be little or no value left for shareholders, after taking into account its $77.5 million outstanding debt position and the nature of indicative proposals received to date.
Earlier this year, Circle announced that it was considering a number of options to reduce debt and ensure the company has sufficient cash flows to fund future operations. These options included the sale of one or more of the company’s existing assets, a merger with a third party and the raising of capital in the form of a subscription for new ordinary shares in the company by one or more third parties.
Circle revealed Friday that it has received a number of indicative proposals, which are in the process of being evaluated, but maintains that none of these would add significant value for equity holders.
“The management continue to consider all options to maximize value for shareholders and stakeholders,” Circle Oil said in a company statement.
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