29th Apr 2016 07:42
LONDON (Alliance News) - Gulf Keystone Petroleum Ltd on Friday said it reached an agreement to provide more time to continue talks with stakeholders about its need to raise funds and restructure its balance sheet beyond the expiry of the grace periods for coupon payments due in April.
The standstill agreement was reached with a committee of holders of the company's notes and bonds, Gulf Keystone, the operator of the Shaikan oil field in the Kurdistan Region of Iraq, said in a statement.
While the standstill agreement remains in effect, Gulf Keystone said it does not intend to make the April coupon payments.
After the expiry of the relevant grace period on May 2 and May 3, respectively, the continuing failure to make those payments under the bonds and the notes will constitute an event of default, Gulf Keystone said.
"At a time when an event of default subsists the holders of not less than one-quarter of the principal amount of the notes or the bonds, as the case may be, then outstanding may request the relevant trustee to declare the principal amount of the notes or the bonds, as the case may be, immediately due and payable," the company said.
By Samuel Agini; [email protected]; @samuelagini
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