Liquefied Natural Gas Limited (ASX:LNG) announced that its Administrators, Craig Crosbie, Daniel Walley and Simon Theobald of PwC Australia, are applying for judicial advice prior to commencing a process (Stage 2 Process) seeking expressions of interest in relation to either a recapitalisation (Recapitalisation) of the Company and /or its remaining subsidiaries (together, the Group), or one or more transactions in respect of the Group's remaining assets (Asset Transaction). Following the completion of the transaction announced on 26 May 2020 (Magnolia Transaction) the Administrators have undertaken an assessment of the solvency position of the Company with a view to determining the basis upon which to proceed with the Administration. At present, it is unclear whether the Company is solvent or insolvent, primarily due to uncertainty as to (i)the quantum of valid creditor claims and (ii) the value that may be realised for the Group's remaining assets.