UK Tax Office Opposes Oil Firm Waldorf’s Debt Plan in Court

The UK tax office is urging a London court to reject Waldorf Production UK Plc’s latest restructuring plan, arguing the proposal would wipe out the oil and gas company’s £69.8 million ($94.6 million) in unpaid windfall tax liabilities while preserving substantial benefits for its proposed buyer.

His Majesty’s Revenue & Customs said in court filings that the plan should “not be sanctioned if it includes the extinguishment of the Company’s liability for Energy Profits Levy,” a tax imposed on North Sea oil and gas profits. HMRC says the deal would allow Harbour Energy Plc to acquire Waldorf while potentially allowing it to benefit from roughly $900 million of value from Waldorf companies’ tax losses.