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ARTICLE · 06 JULY 2021

Hurricane Energy Plc Failed Plan

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A restructuring plan in respect of Hurricane Energy plc under section 901F Companies Act 2006 failed to achieve court sanction in circumstances in which it was supported by 100%...

United KingdomInsolvency/Bankruptcy/Re-Structuring
Stephen Baister
Stephen Baister

A restructuring plan in respect of Hurricane Energy plc under section 901F Companies Act 2006 failed to achieve court sanction in circumstances in which it was supported by 100% of the company's bondholders but rejected by 92% of voting shareholders (Re Hurricane Energy plc [2021] EWHC 175 (Ch)).

The company was formed in 2004 to undertake oil extraction. It had raised US$300 million by an equity placing and US$230 million from the issue of convertible bonds. Difficulties had recently led to a significant reduction in the estimate of available oil reserves such that it was thought that extraction from one well in particular would become uneconomic in the first quarter of 2024.

The restructuring plan prompted by that projection envisaged:

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