Trinity Exploration & Production PLC LON:TRIN rejoins AIM today

Trinity Exploration, an independent E&P company focused solely on Trinidad and Tobago, is rejoining the junior market after gaining approval from its creditors.

 

It has been a long and bumpy road for Trinity Exploration & Production PLC over these past six months to reach this point today. An amazing survival story when you carry on reading, having managed to dodge the silver bullet, the asset-stripping corporate machine.

The company has applied to the London Stock Exchange for 187.6m new ordinary shares, which form the placing and subscription, to be admitted to the junior market on 11 January 2017. New Ordinary Shares at a Placing Price of 4.98 pence per New Ordinary Share

The shares last trading at 1.875 a share, though they reached as high as 158p a share back in early 2014, so why should people pay attention to TRIN today? What do they have to offer?

Remember the share prices and then look at the new market cap, production figures and then compare this against its market counterparts. Before we go any further you have to understand the events over the past 6 months to be able to look at today’s clean lean Trinity Exploration & Production PLC.

In July 2016 Citibank put restricted access on Trinity’s Citibank accounts making the Company unable to fund its working capital position.  Following cessation of the moratorium, the amounts owed from the Company to Citibank was in the reign of $13 million balance (£11m) debt payable.

Lenders won’t extend Trinity’s debt payment deadline. Shares suspended  

After numerous extensions, Citibank froze its accounts and asked for payments on all debt balances due. Trinity had no option but to suspended its shares on 13 July 2016 after Citibank asked for repayments and subsequently froze its accounts.

Statement re Suspension 

“Despite the company’s positive attempts at pursuing specific wider restructuring initiatives, the Company has now been unable to agree suitable terms with Citibank with regard to the existing and potential future moratorium terms and as such the Company finds itself no longer in a moratorium,” Trinity Exploration said in a statement.

On 14 July the company announced a Formal Sale Process and restructuring update  formal sale process (“FSP”) pursuant to the City Code on Takeovers and Mergers in the light of its announcement yesterday in relation to its ongoing discussions with Citibank.

On 9 December the company announced End of Offer Period and Proposed Fundraising  

Raise approximately US$15.0 million (approximately £11.9 million), by way of a Placing and Subscription of, in aggregate, 187,600,000 New Ordinary Shares at a Placing Price of 4.98 pence per New Ordinary Share expected to raise gross proceeds of approximately US$11.725 million (approximately £9.3 million) and a proposed issuance of Convertible Loan Notes expected to raise gross proceeds of US$3.275 million (approximately £2.6 million).

Then the news all share holders wait for was announced last Friday. The hearing of the application for the approval of the Creditors Proposal by the Trinidad and Tobago Court, which was approved by the Trinidad and Tobago Creditors on 19 December 2016, was held on Friday 6 January 2017.  The Company is pleased to announce that the Court approved the Creditors Proposal and this will now be implemented in full.

 

Restoration – Trinity Exploration & Production Plc 11 Jan 2017

Share Talk have been in contact with Trinity Exploration & Production PLC and we are being covering a Q&A with the companies permission, if anyone wishes to forward any questions, please use the contact details on the website.

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