Max Petroleum PLC Initiation of Rehabilitation Process (1222U)

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RNS Number : 1222U

Max Petroleum PLC

27 July 2015

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

FOR IMMEDIATE RELEASE

27 July 2015

Max Petroleum Plc

("Max Petroleum" or the "Company")

Initiation of rehabilitation creditor protection process at subsidiary level

Max Petroleum announces that in order to protect the solvency of Samek International LLP, a wholly owned indirect subsidiary of the Company ("Samek"), the Board has initiated a rehabilitation process under Kazakh law ("Rehabilitation").

Rehabilitation has similarities to a Company Voluntary Arrangement ("CVA") process under English law and the main purposes of the Rehabilitation are:

i. to provide protection against creditor claims during the entire period when Samek is within the Rehabilitation process; and

ii. to reach agreement with creditors of Samek on a fixed timetable for payment of amounts owing to all creditors.

The Rehabilitation, if approved by a competent court, will involve a moratorium on creditors' claims, cessation of accrual of penalties and interest on any outstanding debts, as well as suspension of execution of any court and arbitral judgements. Within three months of the court decision to start the Rehabilitation, a rehabilitation plan, to be agreed between Samek and its creditors, must be approved by a creditors' meeting. The rehabilitation plan must set out a fixed timetable for payment of amounts owing to all creditors and Samek will need to adhere to this plan until the completion of the rehabilitation procedure. While non-ordinary course transactions will in most cases need creditors' approval, the Rehabilitation generally does not prevent Samek from carrying out its business in the ordinary course.

Further announcements will be made as appropriate.

ENQUIRIES

 
 Max Petroleum Plc         [phone] 
 James A. Jeffs 
  Tom Randell 
 
 Stifel Nicolaus Europe 
  Limited                  [phone] 
 Michael Shaw 
 

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