Petroceltic gets helping hand from banks as it seeks a buyer

Embattled oil explorer Petroceltic has been given a lifeline from its banks as it scrambles to find a buyer and save itself from disaster.

The company — which owns assets in Algeria and Egypt — put itself up for sale just two days before Christmas after being caught up in a perfect storm of plunging oil prices and a battle with an activist investor.

Petroceltic has drawn down $217.8 million (£152.3 million) under a facility from HSBC but breached loan covenants and only had $28.1 million in cash as of December 23. What’s more, most of this was in local currencies and not readily convertible.

But the company said it has since received a further waiver of repayments until January 29, while lenders will also consider further leniency while its strategic review goes on.