LONDON (Reuters) - A group of investors led by former Tullow Oil (LONDON:TLW) chairman Patrick Plunkett said on Monday it had offered to help Gulf Keystone (L:GKP) solve its funding problems but the firm had so far declined to engage in discussions.
Gulf Keystone has said it was in talks with a number of parties about a possible sale of the company or some assets to help it solve short-term liquidity issues, caused by low oil prices and non-payments.
On Monday, Gulf Keystone said it would place up to 85.9 million shares to raise a maximum of 30 million pounds ($44.4 million) to strengthen its balance sheet as it struggles with irregular payments for its oil from Kurdistan.
Plunkett, who is chairman of independent oil firm T5, said he had informed Gulf Keystone about an alternative plan he had in mind, but discussions "never got the momentum".
"We are confused. We believe our approach is demonstratively a far better proposition than a stop-gap placing. We were expecting to get some interaction with the company but it didn't happen," he told Reuters.
Gulf Keystone declined to comment. The firm has previously said it would select what it views as the best course of action to see it through its short-term liquidity issues and ensure the greatest value for all stakeholders.
Plunkett said he had put together a pool of investors and proposed a three-part solution. The first step was a $130 million recapitalisation including an immediate $50 million equity funding.
The solution also included a proposal to transform the board and management in combination with the T5's team, and a possible debt for equity conversion.
"We really hope we can still engage in discussions," he said.