WAV not affected by court appointment of provisional liquidator for STG - Management
RE: INVOLVEMENT OF WEST AFRICAN VENTURES LIMITED (WAV)
WITH THE SEA TRUCKS GROUP LIMITED (STG)/BONDHOLDERS
OF THE 9% STG SENIOR SECURED CALLABLE BOND
ISSUE 2013/ 2018
The media has recently reported on the matter between Sea Trucks Group Limited (“STG”) and the Bondholders of the 9% STG Senior Secured Callable Bond Issue 2013/2018.
However, some of these reports have erroneously attempted to link West African Ventures
Limited (WAV) to these matters.
Whilst STG and WAV share a common beneficial ownership, both companies are entirely separate and distinct. WAV is a 100% Nigerian company incorporated in the Federal Republic of Nigeria and STG on the other hand, is a company incorporated in the British Virgin Island. STG does not own any share in WAV and WAV is not a subsidiary of STG. Aside from the shared common beneficial ownership, there subsists a Non-Competition and Non-Circumvention Agreement between both entities for the operation of STG assets, when available for work in Nigeria and in the West African sub-region.
Consequently, the appointment on the 5th of May 2017 of a provisional liquidator of the High Court of Justice, British Virgin Island, ONLY affects STG, which has been unable to fully service its bond obligations, due to the downturn in the global oil and gas industry and does not affect WAV, particularly as WAV is not an obligor under the bond. Indeed the publication announcing this development, stated that “It is important to note that the appointment is only to the Company, being the group holding company. The underlying operating/asset owning companies are not subject to insolvency proceedings”.
It is clear from the foregoing that WAV is unaffected by the reported development as it continues to be in business as a 100% Nigerian onshore/offshore service company, with its own assets and access to STG assets when available in Nigeria and West Africa.
It has become necessary to issue this public notice to assure our numerous stakeholders that WAV continues to operate its business and is committed to its provision of world class services in the Nigerian Oil and Gas Industry and remains your 100% Nigerian partner.