Max Petroleum announces that in order to protect the solvency of Samek International LLP, a wholly owned indirect subsidiary of the Company (Samek), the Board has initiated a rehabilitation process under Kazakh law (Rehabilitation). Rehabilitation has similarities to a Company Voluntary Arrangement (CVA) process under English law and the main purposes of the Rehabilitation are:
i. to provide protection against creditor claims during the entire period when Samek is within the Rehabilitation process; and
ii. to reach agreement with creditors of Samek on a fixed timetable for payment of amounts owing to all creditors.
The Rehabilitation, if approved by a competent court, will involve a moratorium on creditors’ claims, cessation of accrual of penalties and interest on any outstanding debts, as well as suspension of execution of any court and arbitral judgements. Within three months of the court decision to start the Rehabilitation, a rehabilitation plan, to be agreed between Samek and its creditors, must be approved by acreditors’ meeting.
The rehabilitation plan must set out a fixed timetable for payment of amount sowing to all creditors and Samek will need to adhere to this plan until the completion of the rehabilitation procedure. While non-ordinary course transactions will in most cases need creditors’ approval, the Rehabilitation generally does not prevent Samek from carrying out its business in the ordinary course.
