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CategoryXEL

xCite Energy – Equity Holders get 1.5%, Total Wipe Out and Still a Sell!

Today the RNS I have been expecting has finally been announced, here. The key terms are a debt for equity swap with the Secured Bond Holders taking 98.5% for their $140m face value of Secured Bonds and $9m of accrued interest due, i.e. $149m debt in total. I was clearly far too generous with my target above. Shareholders are to get just 1.5% of xCite Energy and its Bentley Asset…

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xCite Energy – ‘Residual Value’, the warning signs were there.

xCite Energy a company once capitalised at £500m released probably the most inevitable RNS of 2016 this morning, perhaps only narrowly behind that of Gulf Keystones Debt for equity RNS in July. The headline of xCite’s RNS which saw the shares crater was ‘statement of share price movement’, but the real headline should have been ‘Shareholders left with crumbs’, the real news was the following buried at the bottom of the release…