4th Mar 2016 08:32
LONDON (Alliance News) - LGO Energy PLC's shares were down 18% to 0.0328 pence on Friday morning, after it said it has reached an agreement with lender BNP Paribas SA on a revision of its schedule of repayments, and its March payment will now be reduced to USD100,000.
LGO Energy said, after this, the remaining outstanding balance will be recovered over the following 18 months.
In November, LGO Energy said its pre-paid swap agreement with BNP Paribas had been terminated at a value of USD10.8 million, including all future interest and fees. At the time, LGO Energy entered into a schedule of repayments with BNP Paribas of a reduced rate of USD75,000 a month until the end of February.
LGO Energy had said after this period, the repayments would be at a rate of around 5.0% per month, which would have been higher. However, it said on Friday it has now extended the period of reduced payments to the end of March. It added a further extension of reduced payments into April would require a separate agreement. The final repayment under the indicative repayment schedule is due no later than September 2017.
By Hannah Boland; [email protected]; @Hannaheboland
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