Iona Energy Group

FTI Consulting Advises on First North Sea Casualty of This Oil Cycle

Corporate Finance

February 2, 2016

North Sea Oil

In January 2016, Chad Griffin and Lisa Rickelton of FTI Consulting were appointed Joint Administrators over UK companies in the Iona Energy group, an oil and gas Exploration and Production (“E&P”) group with assets in the UK North Sea. Although these administrations are a result of the well-known challenges facing oil and gas companies in the current oil price environment, they are the first UK E&P insolvencies within this oil cycle.

Given projected prolonged weakness in the commodity price environment, and with very limited sources of funding available, we should expect to see more E&P restructurings and insolvencies over the near-term.  This article highlights some of the key issues to be aware of for lenders and investors who are looking at contingency planning and potential insolvencies in distressed UK oil and gas situations.

Over the last 12 months, FTI Consulting has advised management, bank groups, bondholders, unsecured creditors and other stakeholders in the most significant energy related restructurings and turnarounds in recent years. In EMEA, FTI was particularly active on restructurings in the oil and gas sector with roles spanning financial diligence, technical reviews, contingency planning and insolvency.

If you would like to speak to us about the issues raised here, and what they could mean for you or your clients, please get in touch.

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