THE fate of Shetland-focused Hurricane Energy looks set to be determined by a High Court judge after investors disagreed about a proposed restructuring.

Hurricane Energy stoked excitement about the potential of the West of Shetland area after making finds in a relatively under-explored layer of granite. However, the company has faced big challenges after suffering production setbacks on the flagship Lancaster field amid the slump in the sector triggered by the coronavirus crisis.

Directors have said the company has no realistic option other than to complete a debt-for-equity swap that will leave bondholders with control of 95 per cent of the shares in the firm. The proposal has drawn fierce criticism from existing shareholders.

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It was put to a vote at meetings of bondholders and shareholders yesterday.

The proposed restructuring was supported by 100 per cent of the bondholders that voted. These represented 84.89% of the $230 million total value of bonds outstanding.

At a meeting of shareholders some 92% of votes cast opposed the proposed restructuring.

It will be considered at a High Court hearing that is scheduled to start on June 21.

Hurricane noted previously that the court could sanction the restructuring even if it were to be opposed by shareholders. The company said yesterday: “If the Court sanctions the Restructuring Plan at the hearing on 21 June 2021, the Restructuring Plan will be binding on all Shareholders despite the resolution not being duly passed at the Shareholder Meeting.

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The company reiterated that if the Restructuring Plan Is not sanctioned by the Court it was likely that there would be a controlled wind-down of the group’s operations.

Shares in the firm closed up 0.09p at 1.21p. They sold for 60p in 2019.

Hurricane said it is producing around 10,000 barrels oil daily from Lancaster, despite suffering problems with a pump on the well concerned.