2nd Sep 2016 07:00
LONDON (Alliance News) - Gulf Keystone Petroleum Ltd on Friday said it has launched a scheme of arrangement related to the balance sheet restructuring that it is attempting to complete with the holders of its convertible bonds and loan notes.
A hearing was held on Thursday at the Chancery Division of the High Court of Justice of England and Wales, which resulted in the company being granted an order to convene meetings with its creditors so the loan note and bond holders can consider and decide whether to approve the scheme.
There will be meetings held with the holders on September 22 in London.
Gulf Keystone shareholders backed its financial restructuring at a special general meeting held in early August, paving the way to move ahead with its plan to convert a substantial pile of debt into equity.
The company signed an agreement with bond and loan note holders that hold around 82% of its outstanding balance, and the creditors agreed not to enforce the terms of the notes or bonds and to support the restructuring.
The London-listed company has been trying to negotiate restructuring terms with the holders of its loan notes and bonds after it struggled to make coupon payments earlier this year, forcing the Kurdistan oil producer to consider its options.
By Joshua Warner; [email protected]; @JoshAlliance
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