2nd Apr 2020 06:53
(Alliance News) - Echo Energy PLC on Wednesday said it has secured some relief from paying debt interest amid a move to try and preserve cash.
However, the company has defaulted on paying interest on a set of secured notes.
Echo is now no longer to make a previously required quarterly interest payment on its GBP1.0 million 12% loan.
This interest payment was due on Tuesday this week, and Echo will not have to make any interest payments until the end of March 2021.
The new repayment schedule is GBP100,000 in March next year, and then three quarterly instalments of GBP50,000 from June that year, and then the remainder with interest on March 8, 2022.
Elsewhere, Echo is also in talks to defer interest payments for 2020 on its EUR5.0 million 8.0% convertible debt facility. It said these talks are going well.
However, turning to EUR20.0 million 8% secured notes, deferral of interests payments requires a vote from the holders of the notes.
Echo did not make the payment date of Tuesday this week and is now in default until the holders of the notes meet to give approval for the deferral of interest payments.
Shares closed 27% higher on Wednesday in London at 0.57 pence each.
By George Collard; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
ECHO.L