Shares suspended

Oil firm Xcite Energy heading for liquidation

Trading in Xcite Energy shares was suspended today after talks aimed at saving the oil explorer from liquidation broke down.

The firm, owner of the Bentley field east of Shetland, wanted to pass 98.5% of its shares to lenders but the deal was not acceptable to principal bondholders.

It is likely that liquidators will be appointed in the coming weeks with investors in the company, quoted on the Alternative Investment Market, receiving nothing.

The company said in June that it had been given it some breathing space by agreeing to extend the repayment of bonds by three months while talks continued to restructure its $135 million (£110m) debt.

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