A company controlled by businessman Larry Goodman is to make up to €6.35m available to Barryroe Offshore Energy (BOE), which is currently in examinership, as part of a rescue package.
The development comes as BOE announced that Chief Financial Officer, Colin Christie, has stood down and left the company.
In a statement to the stock market this evening, BOE said it has secured a commitment for an investment by Lorsden (Jersey) Limited, the parent company of Mr Goodman’s Vevan Unlimited Company.
Vevan is currently BOE’s largest shareholder, holding around 20% of the company.
BOE said an agreement has been reached between it, the examiner and Lorsden, which will see it make €1,050,000 available to BOE.
Lorsden has also lent €300,000 to BOE to enable it fully explore the restructuring options available to it.
“In addition, the Investor has committed to make available further funding in the amount of €5,000,000 upon agreement of an appropriate business plan, to be supplemented in due course by substantial additional funds as required to invest in future business plan prospects,” Barryroe said.
“The Proposals will be put to meetings of creditors and members and are subject to confirmation by the High Court.”
It added that if approved, BOE will issue new shares to Lorsden and cancel all existing shares, which will cease trading on the AIM and Euronext Growth markets.
“The entire Board of Directors of the Company has committed to stand down as soon as practicable following the implementation of the Proposals, and in any event not later than 30 November 2023,” it said.
“The Company also announces that Colin Christie has stood down as Chief Financial Officer and has now left the Company.”
“The Board wishes to extend its appreciation for Mr Christie’s significant contribution over the last 11 months, most especially as regards the efforts made to secure further funding for the business.”
Barryroe said full details of the Scheme of Arrangement formulated by the examiner will be finalised and announced later this week, along with notices of meetings of shareholders and of creditors.
Kieran Wallace of Interpath Advisory was appointed examiner to Barryroe in July, after the company was refused a permit by the for its key oil project off the Cork coast.