Sovereign Oilfield Group has appointed PricewaterhouseCoopers as its administrator.
Management has been trying to renegotiate the terms of the oil services providerís existing loans. Net debt was £26.9m at the end of September 2009.
There is uncertainty that the trading operations can services this level of debt. Sovereign has already received enforcement orders from creditors and it is unable to meet these payments without the support of the lenders.
The shares were suspended this morning at 4.125p each, which valued Sovereign at £710,000.
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