RXT sells off subsidiary stake

Asset sales: at RXT

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Steve Marshall

 05 February 2013 16:01 GMT

Reservoir Exploration Technology (RXT) is selling off its stake in partly-owned subsidiary GeoRXT in a move to ease financial pressure on the debt-burdened ocean bottom seismic cable contractor.

The Oslo-listed company has previously announced it intends to sell-off superfluous assets as it battles total liabilities of more than $65 million at the end of the last quarter.

RXT saw talks with potential investors for a takeover or partnership deal break down late last year, leaving it at the mercy of creditors as it hopes to secure an agreement for them to convert debt to equity.

The company has now reached a deal with ION Geophysical to sell its 30% stake in GeoRXT in return for a cash sum and the right to use all equipment earlier supplied and financed by…

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