All trading in PA Resources was suspended on the Stockholm Stock Exchange on Wednesday. The announcement came after Gunvor Group, owned by billionaire Torbjorn Tornqvist, the day before announced that PA Resources will not receive more funding, either in the form of share capital or new loans.
Gunvor Group is both PA Resources’ largest shareholder and largest lenders, and also requires back a loan of $ 84 million plus interest from the oil company. The announcement means most likely the end of PA Resources.
– It looks tough it out. Gunvor Group has been a mainstay for the entire company’s operations. Now they do not want to be longer so clearly bad news, says one analyst who wishes to remain anonymous.
Oil and gasbolagets problems began last year when a development project in Tunisia encountered political resistance. Since then, funding problems plant. PA Resources has two loans with Gunvor Group totaling $ 113 million, plus interest, writes the news agency Direkt. In addition, the oil company two bond where 675 million Norwegian kroner and 750 million Swedish kronor plus interest has not been paid.
PA Resources has a total debt of over 2.3 billion. 385 million would be paid back in the day, but the company today has only a tenth of that sum. PA Resources has been unable to pay any interest on their loans the past six months, and at the end of March, the company applied for reconstruction.
– The important thing is that we need new cash. It may come through a traditional rights issue, new borrowing through new bond, or other types of loans from Gunvor Group; it is a matter of debate right now, said PA Resources Financial Officer Tomas Hedström news agency Directly then.
But a few more loans is not the case. And that Gunvor Group requires repayment of previous loans makes it very difficult for PA Resources to get other funding, according to the analyst.
– PA Resources can in the current situation does not pay $ 84 million. Then Gunvor Group is likely to require collateral for the loan, and it’s about the oil fields in Equatorial Guinea. It is difficult to see how PA Resources will manage without the assets.
Gunvor Group backs out of the company right now was something of a surprise, according to the analyst. But the decision is logical, he thinks.
– The alternative would be to push even more money in PA Resources, and they have done before without getting anything back. In addition, the Gunvor Group has been under fire themselves, they have probably busy in their place.
Gunvor Group was founded in 2000 by Torbjörn Törnqvist and the Russian-Armenian businessman Gennady Timchenko, and is one of the world’s largest oil trading companies. The Swiss company has been accused of having received its role as the leading exporter of Russian oil through contacts with Russian President Vladimir Putin. Last spring ended Timtjenko on the US sanctions list and then sold its stake in Gunvor. Today controls Törnqvist all votes in the company and owns 86 percent of the shares.
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