21st Dec 2021 09:33
(Alliance News) - Shares fell in Nostrum Oil & Gas PLC on Tuesday after confirming that it is in talks with an ad hoc noteholder group with the aim of reducing its indebtedness and lowering the group's cost of funds.
Shares in the Caspian Basin-focused oil & gas explorer were 41% lower at 3,84 pence on Tuesday in London. The stock is down 58% so far in 2021 and from an end-of-April peak of 15.00p.
Nostrum noted press reports on the terms of a potential restructuring of the company's USD725 million 8.0% notes due July 2022 and its USD400 million 7.0% senior notes due February 2025.
The discussions with the noteholder group on the proposed note restructuring, includes a reduction in financial indebtedness and implementing a debt for equity swap, which would lead to existing shareholders having a significantly reduced stake in Nostrum's share capital.
In October 2020, Nostrum had entered a forbearance agreement with the noteholders, under which they had agreed to not exercise rights and remedies that they have under the indentures governing the two series of notes.
Nostrum stressed on Tuesday that no definitive agreement has been made, and that the forbearance agreement will expire on Friday unless extended by noteholders.
By Dayo Laniyan; [email protected]
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