Business
Operational Update
Operational Update.
About this update from Cloudbreak Discovery Plc
[{"type":"text","content":"\n Cardinal Resources plc\n16 October 2007\n\nOperational Update\nLONDON - Tuesday, 16 October 2007\n\nCardinal Resources plc (AIM:CDL) ('Cardinal' or 'the Company'), an independent\noil and gas exploration and production company operating in Ukraine, today\nprovides an operational update and update on ongoing refinancing discussions.\n\nREFINANCING DISCUSSIONS\n\nCardinal's shares were suspended from trading on AIM on 1 October 2007 pending\nconclusion of refinancing discussions which, if successful, would enable the\nCompany to clarify its financial position and publish its Interim Results to 30\nJune 2007.\n\nCardinal remains in ongoing discussions with one or more potential funding\nproviders to obtain a viable short to medium-term financial solution. It has not\nyet been possible to conclude negotiations or reach agreement on acceptable\nterms that the Board of Cardinal could recommend to shareholders.\n\nAs reported on 18 September 2007, the Company has been in discussions with\nSilver Point Capital ('SPC') regarding the terms of the SPC Payment-in-kind \n('PIK') note facility and sought consent from SPC as is normal for a\nsenior lender to draw down on any subordinated loan such as that provided for by\nthe Hares Commitment Letter. SPC has not provided consent to such a drawdown and\nas a result Cardinal's cash-flow remains very tight.\n\nThe result of any discussions or negotiations that provide a viable financial\nsolution will be fully disclosed to the Company's shareholders once obtained and\nshareholder approval sought in accordance with the AIM Rules as required.\n\nThe Company's Nominated Adviser ('NOMAD'), Nabarro Wells & Co Limited, has given\nnotice of resignation effective 23 October 2007. Cardinal shares will remain\nsuspended under AIM Rule 1 as well as AIM Rule 18 if the current suspension of\nCardinal's shares under AIM Rule 18 has not by then been lifted and Cardinal has\nnot appointed a replacement NOMAD by that date. Cardinal is seeking a\nreplacement NOMAD. If Cardinal does not appoint a replacement NOMAD within a\nmonth of the existing NOMAD's resignation then the admission of its shares to\ntrading on AIM will be cancelled under AIM Rule 1.\n\nDepending upon the outcome of those efforts, the directors of Cardinal will\ncontinue to review all the options available to obtain the most value for\nShar...