HHurricane energyS shares rose nearly 30% after a court rejected its draft restructuring plan.
The Aim-listed North Sea oil driller in April announced a controversial debt-for-equity restructuring proposal that would return 95% of the company to its bondholders.
At the time, he said failure to pass the plan would likely result in a “controlled retirement. […] followed by judicial liquidation ”.
However, High Court Judge Zacaroli said there was “a reasonable possibility” that the company could take measures such as refinancing to meet the bond payments.
Hurricane, whose financial problems stem from the underperformance of his Lancaster field, said he was considering a call, warning that there remains a “significant risk that no value will be returned to shareholders.”
Nonetheless, the shares climbed to 2.8 pence. The small-cap company has many retail shareholders who have bought into the vision of former CEO Robert Trice, a geologist who developed techniques to recover oil from fractures in brittle rock.
Elsewhere, the FTSE 100 lost 63 points to end the day at 7,072.97, after a session where travel shares and Burberry weighed on the index.
Burberry shares fell to £ 20.27 before recovering slightly to £ 20.55 – still 195p lower than Friday’s close.
Shares of the fashion brand plunged after chief executive Marco Gobbetti announced he was leaving to take charge of Italian luxury goods maker Salvatore Ferragamo in his native Italy.
Airlines shares also suffered heavy losses, as European holiday destinations introduced tighter restrictions on British tourists amid growing concern over the Delta coronavirus variant.
With the prospect of another lost summer, the owner of British Airways AGI lost 11p from its stock price, falling to 176p. Tui also dropped from 21p to 384p, Wizz Air fell from 273 pence to £ 47.45 and easyJet fell from 55p to 900p.
Michael Hewson, chief market analyst at CMC Markets, said: “European markets have had a bad start to the week as increased virus cases threaten to undermine sentiment as the end of the month approaches, the end of the quarter and the first half of 2021, with the energy sector, with travel and leisure leading the losses.
“It was another tough day for the travel and leisure industry today with companies like IAG, easyJet, Ryanair and Tui, as well as Air France-KLM and Lufthansa.”
Oil stocks have also felt the impact of these worries, with fears of falling demand from the travel industry weighing on companies like BP and Shell.
Mr Hewson added: “Oil prices are retreating ahead of this week’s Opec + meeting, along with concerns that an increase in global cases and further restrictions will dampen the pace of the global reopening.”
Brent raw decreased from 1.55 pc to $ 75 a barrel.