(WebFG News) - Nighthawk Energy and its US subsidiaries face remedial actions from the Commonwealth Bank of Australia (CBA), including the possible foreclosure of assets, after defaulting on a loan from the bank.
Despite this, independent oil and natural gas company Nighthawk stated that it believes CBA will allow it to proceed with its ongoing plan to restructure or pursue the sale of an asset before 1 June in order the rectify the situation.

The AIM-traded company appointed SSG Advisors on 25 January to offer advice on the available options for restructuring the CBA Loan principal balance of $21.25m prior to its maturity date of 1 June.

A statement from Nighthawk said: "SSG has completed the solicitation phase of its debt restructuring process. This process has, thus far, produced only proposals to directly purchase the Company's oil and gas producing assets at a value below that of the CBA Loan principal."

The company said there is "no certainty" that it will proceed down the asset sale route but that any sale is likely commence through a series of voluntary Chapter 11 bankruptcy filings.

Elsewhere, the company continues to meet operating and financial costs and has a current cash position of approximately £1m, which Nighthawk said is enough to cover costs, other than repayment of the CBA loan, through the restructuring process.

As of 1211 BST, Nighthawk Energy's shares were down 67.71% at 0.11p.

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