Petroceltic exploring potential sale after it breached its bank covenants
Irish oil and gas explorer Petroceltic is exploring a potential sale after it breached its bank covenants and said it had been unable “to make material repayments” on its debt facilities.
The distressed sale process now underway is the clearest sign yet of the hammering the Irish oil and gas sector is under as a result of the collapse in prices.
In a statement last night, the company said it does not have “certainty on liquidity beyond early January” and had initiated a strategic review that could result in a sale of more assets or of the entire business. It has hired Bank of America Merrill Lynch and Davy Corporate Finance to run the strategic review.