10th Jul 2015 07:46
LONDON (Alliance News) - IGas Energy PLC Friday said it will hold meetings with its bondholders in August to propose moving the company's accounting period and said it has already received a substantial amount of support from over two-thirds of those bondholders.
The company said it wants to align its accounting period with its operating partners and to reflect operational and financial developments after it completed the farm-out deal with INEOS Upstream Ltd in May.
IGas' current financial year ends on March 31, but the company is proposing changing it to match the calendar year to end December 31.
IGas said it has already held two rounds of "positive" discussions with bondholders which has led to a high proportion of them supporting the change. Those bondholders represent a total of 70% of the outstanding secured and unsecured voting bonds, said the company.
The final bondholder meeting to propose the changes will be held on August 4, and IGas is expecting to amend its accounting period and relevant documentation immediately afterwards.
The farm-out deal completed in May was for INEOS to acquire the PEDL 133, 145 and 193 and EXL 273 licences from IGas for GBP30 million cash plus a funded forward work programme of up to GBP138 million gross, of which IGas' share will be fully funded by INEOS.
IGas shares were down 4% to 23.75 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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