PA Resources directors schedule second liquidation vote for Oct. 27

By Caroline Salls

Pittsburgh, Sept. 25 – PA Resources AB’s board of directors will hold an extraordinary general meeting and second meeting for liquidation purposes on Oct. 27, according to a news release.

Proposals to be considered at the meeting include ratification of agreements and arrangements made during the company’s corporate reorganization, approval of future arrangements for the delisting of PA Resources’ shares and of a management incentive program, a reduction of the share capital and changes to the company’s articles of association.

Election of a new board has also been added to the agenda as a result of board member and chief financial officer Tomas Hedstrom’s decision to leave the board.

According to the release, the board presented a balance sheet for liquidation purposes at an extraordinary general meeting held Feb. 27, 2015 that showed that the shareholders’ equity was less than half of the registered share capital.

At that meeting, it was decided that the company should not enter into liquidation.

The company said the Swedish Companies Act requires it to hold a meeting to reconsider whether it should go into liquidation within eight months of the initial meeting.

A new balance sheet for liquidation purposes and a related auditor’s report must be presented at the second meeting.

PA Resources said the balance sheet for liquidation purposes is expected to show that the shareholders’ equity amounts to at least the registered share capital, assuming that the company’s creditors vote in favor of the composition plan at composition proceedings on Oct. 2 and that the composition plan becomes legally binding.

As a result, the board said it believes that there are reasons for the company to continue its operations and therefore proposes that the shareholders vote against the proposal that the company should go into liquidation.

The company said the board is asking that its articles of association be amended so the share capital cannot be lower than SEK 500,000 or higher than SEK 2 million.

PA Resources’ share capital would be reduced to cover losses, according to the release. Following the resolutions to reduce the share capital, the share capital will total SEK 800,000 and each share will have a quota value of SEK 800,000/113,167,992.

PA Resources is an oil and gas company based in Stockholm.

© 2015 Prospect News.
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