A close up of a magnifying glass rests on top of a bar graph that shows declining sales or performance over a quarterly basis. The image is photographed using a very shallow depth of field.

G3 Exploration Limited (LON:G3E) has issued an update on the appointment of joint provisional liquidators (JPLs) to assist in its restructuring plans.

The company said its application to appoint the JPLs had sought court approval to grant them and its board of directors the power to control the subsidiaries of the company, however, this aspect of the application was not successful.

READ: G3 Exploration ploughs on with its refinance objectives

As a result, the subsidiaries of the company are now under the control of receivers who were appointed on 9 September 2019 over the shares that the company holds in Greka Gas China Ltd. The receivers subsequently exercised shareholder rights to remove and replace existing directors at the subsidiary with individuals from the receivers’ firm.

The JPLs now until 5 February to explore possibilities of a restructuring and prepare a report. They are expected to undertake the process with G3’s management and other key stakeholders including the receivers.

Looking ahead, G3 said the JPLs next steps will be to continue enquiries to consult with and gain information from key stakeholders with a to determining the possibility of a restructuring or refinancing option.

The JPLs’ findings and their ultimate recommendation as to the likelihood of a successful restructuring will be presented to the court in their report on or before 5 February.

The company also stressed that no such restructuring or refinancing has been developed or agreed, however, the JPLs are working with both the company and the receivers to investigate all potential options.

Shares in G3 were 33% lower at 10p in late-afternoon trading on Wednesday.