Business
Update on Banking Arrangements with Unex Bank
Update on Banking Arrangements with Unex Bank.
About this update from Enwell Energy Plc
[{"type":"text","content":"\n \nRNS Number : 5022Q Regal Petroleum PLC 29 February 2016 \n\n \n29 February 2016\n \nRegal Petroleum plc\n(\"Regal\" or the \"Company\")\n \nUpdate on Banking Arrangements with Unex Bank\n \nRegal Petroleum plc (AIM: RPT), the AIM-quoted oil and gas exploration and production group, announces an extension to its security arrangements relating to its banking facilities with PJSC Unex Bank (\"Unex\") in Ukraine.\n \nAs announced on 26 May 2015, the Company and its subsidiaries (the \"Group\") hold a number of current and deposit accounts with Unex, which is a Ukrainian bank and is part of the PJSC Smart-Holding Group (\"Smart\"), which is ultimately controlled by Mr Vadim Novinskiy, who also controls an indirect 54% majority shareholding in the Company. As such, both Unex and a number of Smart group companies are considered to be related parties of Regal pursuant to the AIM Rules for Companies (\"AIM Rules\").\n \nAlso as announced on 26 May 2015, the Company entered into an agreement with Smart dated 26 May 2015 (the \"May Agreement\") for, inter alia, the provision of a guarantee and security over certain assets of Smart in respect of the Group's cash deposits in Unex. These comprise (i) a guarantee from Pelidona Services Limited (\"Pelidona\") to Regal under which Regal's cash deposits in Unex are guaranteed (the \"Guarantee\"); and (ii) a share pledge agreement between Energees Management Limited (\"Energees\") and Regal under which Energees pledges its 100% shareholding interest in Prom-Energo Product LLC as security for the Company's cash deposits in Unex (the \"Pledge\"). \n \nWhen the May Agreement was entered into, it was envisaged that as the Company sought to diversify its banking arrangements in Ukraine between a number of banks, there would be a reduction in the funds held with Unex and therefore the security, comprising the Guarantee and Pledge, was set to expire at the end of March 2016. However, this has not occurred and as set out in the Group's Interim Report announced on 28 September 2015, the Group's cash deposits held in Unex were reclassified as short-term investments, rather than cash or cash equivalents, as certain requests to reduce the cash deposits at Unex, in accordance with the May Agreement, had not been acted upon and as at 29 February 20...