Antares Energy’s future remains uncertain after the adjournment of a crucial meeting of note-holders in Perth.
The meeting was called to consider the cash-strapped, WA-based company’s request to delay $24 million of redemptions which fell due yesterday.
However, the resolution was not put to a vote, with the meeting instead adjourned for a month by its independent chairman, barrister Daryl Williams, to enable note-holders time to consider amendments proposed by Antares.
The adjournment technically puts Antares in default on the notes, but it gives the company valuable additional time to secure the cash it needs to survive by striking a new deal to sell one or both of its US flagship oil and gas projects.
An agreement in September to sell the Northern Star and Big Star projects to a US private equity group for $US250 million ($340 million) has not been consummated, leaving Antares unable to meet the redemptions.
The company is seeking approval to delay the redemptions by a year and a moratorium on interest payments.
Executive chairman James Cruickshank said Antares was in talks with various potential buyers who have expressed interest in the assets since oil prices recovered to about $US40 a barrel.
“The hope or the expectation is that we get one of those groups into a binding arrangement before the end of the month,” Mr Cruickshank said.
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