Shares of Hurricane Energy PLC (LON: HUR) are up 485% since Bottoming at 0.603p in May, followed by an impressive rally that saw it recently trade above 4p per share.
The beleaguered oil company has seen its shares rally after the UK High Court rejected its restructuring plan and asked the directors to convene a meeting of its bondholders, some of whom were opposed to the plan.
The court ruled that Hurricane Energy was not in danger of immediate liquidation and that its current shareholders had a right to elect and demote its directors.
Hurricane Energy’s majority shareholder, Crystal Amber Fund, raised its stake in the lender to 23.09% after the courts sided with the shareholders leading to the immediate resignation of most of the oil company’s directors, unlike bondholders.
Crystal Amber withdrew its request for a general meeting of shareholders after Steven McTiernan, Hurricane Energy’s chairman, resigned and the board appointed Alan John Wright as interim chairman.
Five of the company’s non-executive directors also resigned, leaving Crystal Amber and other shareholders to chart a new path for the UK oil exploration and production company.
Hurricane Energy also announced that the lock-up period for bondholders to accelerate the conversion of their notes had lapsed; hence, they no longer had the right to pursue such an option.
Investors were pleased to see Crystal Amber up its stake in the oil company, and many are hoping that a new board will steer the firm in the right direction.
Meanwhile, Hurricane Energy shares are in the middle of a wide trading range and, as such, do not present an excellent trading opportunity.
*This is not investment advice.
Hurricane Energy share price.
Hurricane Energy shares are up 485.57% from their May bottom price of 0.603p to their current price of 3.531p.