Baraka avoids liquidation, regains company control
Cash-strapped Baraka Petroleum has regained control of its company after a meeting of creditors last week terminated its voluntary administration being conducted by the firm Sims Partners.
MELBOURNE, Aug. 5 -- Cash-strapped Baraka Petroleum Ltd., Perth, has regained control of its company after a meeting of creditors last week terminated its voluntary administration being conducted by the firm Sims Partners.
However regaining control came at the cost of losing the company's Chief Executive Officer Mark Fenton, who has resigned.
Baraka says all outstanding creditors have been paid or are due to be paid in full, avoiding liquidation of the company.
Baraka went into voluntary liquidation May 2 after failing to raise capital and divest assets to meet commitments in West Africa and South America.
As part of the settlement last week Baraka has withdrawn from the northern Mali joint venture comprising Eni and Sonatrach. It also has entered an agreement with the La Punta field joint venture in Colombia to release its joint venture obligations and signed an assignment agreement with the Chiuaco joint venture.
Baraka retains 25% free carried interest in exploration permits Ta11 and Ta12 in eastern Mauritania operated by Woodside Petroleum.
The company's board is now discussing with the Australian Securities Exchange its requirements for a resumption of trading on the ASX. As part of these requirements the board expects to secure further funds to sustain its operations for an adequate period.