Business
Release from historic potential ?2m liability
Release from historic potential ?2m liability.
About this update from Uk Oil & Gas Plc
[{"type":"text","content":"\n \nRNS Number : 8059V UK Oil & Gas Investments PLC 18 December 2013 \n \n\nFor immediate release - 07.00 18 December 2013\n \nUK Oil & Gas Investments PLC\n(\"UKOG\" or \"the Company\")\nUKOG released from historic £2 million Potential Liability\n \nUK Oil & Gas Investments Plc (AIM: UKOG) is pleased to announce that the Company has now been formally released from the potential £2m liability to HSBC under a cross guarantee at no cost to the Company. This liability existed from when the Company's main historic business was the manufacturing of specialty antennas.\nDavid Lenigas, the Company's Chairman, commented:\n\"This is excellent news for our shareholders as it marks a clear departure from the past by removing the residual risk of any claims relating to the historic £2m loan. UKOG can now concentrate all of its energy on pursuing compelling investment opportunities in the domestic conventional oil and gas sector in the UK.\"\nAbout the HSBC Cross Guarantee:\nA £2m cross guarantee was established back in February 2012 between Sarantel PLC (now known as UKOG) and its subsidiary Sarantel Ltd (a speciality antenna manufacturing company) as part of a security package to cover HSBC if a £2m loan facility was not repaid by Sarantel Ltd. HSBC required Sarantel Ltd. to put this guarantee in place as an additional security measure before they would agree to finalise the loan facility.\nWhen Sarantel PLC's subsidiary, Sarantel Ltd., was placed in administration in June 2013, it had no financial resources to pay back the £2m loan. The loan has now been settled in full by Harris Corporation, the party which provided security for the loan, and the release from the cross guarantee has now been unconditionally granted by H...