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UPDATE 1-Carbon firm AgCert to delist in survival bid

(Adds details, background)

LONDON, April 4 (Reuters) - Bankruptcy-threatened carbon project developer AgCert AGC.L, which sought protection from its creditors after misjudging its carbon credit portfolio, will delist to help stay in business, the company said on Friday.

“For current, ordinary shareholders, it’s effectively over,” said a source close to the company.

“The company can potentially exist in some form or another but it is unlikely current shareholders will receive participation in that business,” said the source.

The company’s appointed examiner is preparing proposals that could keep it in business, if approved by those to whom it owes money, but remaining as a listed company would jeopardise this, AgCert said in a statement.

“In the absence of these proposals being approved by all parties and successfully implemented, there is no reasonable prospect that the company will be able to continue to operate a viable business,” it said Friday.

AgCert is one of a growing number of speculators that produce and sell greenhouse gas offsets in developing countries.

It generates UN-issued credits by capturing and breaking down methane on pig farms, mostly in South America.

The company pre-sold more of these credits than it was able to generate in 2008, meaning it would have to make up the difference by buying credits in the open market at a price it could not afford.

“It is talking to its creditors so it does not have to meet its full obligations,” a source familiar with the situation told Reuters.

“The company has got creditors greater than its ability to meet those and part of the ... process is trying to renegotiate those obligations to allow the continuing entity to carry on,” said a source.

“There’s a handful of options and we’ll have to wait and see what happens,” the source said. (Reporting by Chris Wills, editing by Will Waterman/Andrew Hurst)

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