UK Premier Upstream Deals Lose Attraction

UK independent Premier said March 19 that the hearing to sanction the creditor schemes of arrangement – the final part of the legal process as it seeks to buy producing assets in the UK North Sea – has concluded in the Court of Session in Edinburgh.

The fall in oil and gas prices since the matter was put to the vote in early February means the deal now looks less attractive. But the judge's approval of the schemes would at least allow management and shareholders the option to consider the purchase.

Court approval of the schemes is required to provide lender consent for the purchase of the BP and Dana acquisitions, the related funding arrangements and the extension of Premier’s credit facilities, which major creditor Asia Research and Capital Management is seeking to block. It was the only voice against the schemes. Premier will provide a further update to the market once the judge has made her decision, which can take two weeks.