Rex International Holding Limited: Key Update on Lime Petroleum Holding’s Recapitalisation and Interim Liquidity Funding

Key Highlights for Investors

• Bondholder Approval for Interim Liquidity Funding: Rex International Holding Limited (“Rex” or the “Company”) has announced that bondholders of its subsidiary, Lime Petroleum Holding AS (“LPH”), have approved a significant resolution. This approval facilitates the potential for interim liquidity funding on an expedited basis, a critical step prior to a comprehensive recapitalisation of the LPH Group.
• Comprehensive Recapitalisation Plan: The recapitalisation efforts may include various interim liquidity measures and other remedial actions as deemed necessary. These initiatives aim to stabilise and strengthen LPH’s financial position.
• Engagement of Restructuring Advisors: LPH will engage Alvarez & Marsal Europe LLP (“A&M”) as restructuring advisors. A&M will provide oversight and expertise, including the appointment of a Chief Restructuring Officer. There is also the potential to engage further advisers, such as an additional financial adviser, to support the recapitalisation and restructuring processes.
• Bond Agreement Terms Remain Unchanged: All other terms and conditions of the existing bond agreements remain unchanged and in full effect, ensuring continuity and clarity for bondholders and investors.
• Bond Trustee Empowered: The Bond Trustee has been authorised to implement the approved resolutions and complete the related documentation, paving the way for swift execution of the planned initiatives.
• Stakeholder Engagement: LPH has expressed appreciation for the support and constructive engagement demonstrated by its bondholders throughout this process.

What Shareholders Need to Know (Potentially Price Sensitive)

• Liquidity and Restructuring Measures: The approval for interim liquidity funding, along with the engagement of high-profile restructuring advisors, signals both the urgency and seriousness with which LPH and the Rex Group are addressing their financial challenges. These developments could have a material impact on Rex International’s financial health, risk profile, and future cash flows.
• Potential Share Price Impact: The market may react to these measures as positive steps toward stabilising and potentially enhancing shareholder value, given that the recapitalisation and liquidity injections are designed to safeguard LPH’s operations and, by extension, Rex’s consolidated position.
• Unchanged Bond Terms: The fact that the existing bond terms remain intact provides certainty to stakeholders and reduces the risk of adverse changes that could negatively impact Rex’s balance sheet.
• Execution Risk: Investors should be aware that while these initiatives are positive, their ultimate success depends on effective execution and cooperation from all relevant parties. The engagement of A&M and potential additional advisers is a strong signal of commitment to addressing current challenges.

Summary for Investors

The latest update from Rex International Holding Limited represents a pivotal moment for the company and its subsidiary, Lime Petroleum Holding AS. With bondholder approval secured, the company is set to pursue interim liquidity funding and a broad recapitalisation, supported by world-class restructuring advisors. These strategic moves are aimed at shoring up LPH’s financial position and ensuring long-term stability. Investors should closely monitor upcoming developments, as successful execution of these measures could materially improve Rex’s outlook and may influence the share price.

Disclaimer

This article is provided for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own research or consult with a qualified financial adviser before making any investment decisions. The information presented is based on announcements made by Rex International Holding Limited and may be subject to change.

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