Echo Energy PLC Further re Proposed Debt Restructuring (3195I)
April 01 2020 - 2:00AM
UK Regulatory
TIDMECHO
RNS Number : 3195I
Echo Energy PLC
01 April 2020
1 April 2020
Echo Energy plc
("Echo" or "the Company")
Further re Proposed Debt Restructuring
Echo Energy, the Latin American focused upstream oil and gas
company, provides a further update on the proposed restructuring of
the Company's existing debt to defer all cash interest payments
during 2020 with a view to enabling the Company to preserve
existing cash resources.
The Company is pleased to announce entry of an amendment to the
Company's GBP1.0 million 12.0% loan facility (the "GBP1m Loan")
such that the Company has not been required to make the previously
required quarterly interest payment under the GBP1m Loan on 31
March 2020 and no further payment will be required of the Company
under the GBP1m Loan prior to 31 March 2021. The amendments to the
terms of the GBP1m Loan are set out below.
In addition, the Company confirms that negotiations to agree the
deferral of 2020 interest payments with the holder of the Company's
EUR 5.0m 8.0% secured convertible debt facility (the "EUR 5m Loan")
continue to progress well and that the loan holder has indicated
their continued support of the Company.
In order to provide the parties with the time required to
conclude an amendment to the EUR 5m Loan, the holder of that loan
has confirmed to the Company that, whilst the parties remain in
constructive negotiations in relation to the amendment, it will
waive default rights under the EUR 5m Loan for the non-payment of
31 March 2020 interest. The Company looks forward to updating
shareholders on the amendment to the EUR 5m Loan shortly.
As announced by the Company on 25 March 2020, deferral of
interest payments under the Company's Luxembourg listed EUR 20.0m
8.0% secured notes (the "Notes") will required approval at a
meeting of the holders of the Notes (the "Note Holders"). The
Company has notified the Note Holders of the Company's proposal to
delay payment of interest due on the Notes on 31 March 2020. The
Company is finalising its proposals in this regard, and where
relevant taking note of any representations made by Note Holders,
ahead of convening a Note Holder general meeting. The Company
confirms that it has not met the 31 March 2020 Notes interest
payment and as a result the Company will be in default on the Notes
until such time as Note Holder approval is received for a
restructuring of Note interest payments. The Company will convene a
meeting of the Note Holders as soon as is reasonably
practicable.
GBP1m Loan amendment
The GBP1m Loan has been amended such that, with effect from 1
January 2020, interest on the GBP1m Loan will now accrue at an
unchanged annual interest rate of 12.0% and, at the end of each
quarterly interest period, be added to the aggregate principal
amount owing under the GBP1m Loan, for payment on maturity. The
Company has agreed that, as amended, the GBP1m Loan will now be
repayable as follows: (a) GBP100,000 in March 2021; (b) three
quarterly instalments of GBP50,000 on the last business day of the
relevant month commencing in June 2021; and (c) the balance of
GBP750,000, together with accrued interest, on 8 March 2022. The
other terms of the GBP1m Loan remain unchanged.
Further announcements will be made, as appropriate in due
course.
For further information, please contact:
Echo Energy via Vigo Communications
Martin Hull, Chief Executive Officer
Vigo Communications (PR Advisor)
Patrick d'Ancona
Chris McMahon +44 (0) 20 7390 0230
Cenkos Securities (Nominated Adviser)
Ben Jeynes
Katy Birkin +44 (0) 20 7397 8900
Shore Capital (Corporate Broker)
Jerry Keen +44 (0) 20 7408 4090
Note
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCSDWESFESSESD
(END) Dow Jones Newswires
April 01, 2020 02:00 ET (06:00 GMT)
Echo Energy (LSE:ECHO)
Historical Stock Chart
From May 2024 to Jun 2024
Echo Energy (LSE:ECHO)
Historical Stock Chart
From Jun 2023 to Jun 2024