Global Energy Development PLC RESTRUCTURING OF NOTES PAYABLE (7534Z)

TIDMGED

RNS Number : 7534Z

Global Energy Development PLC

12 March 2013

For Immediate Release 12 March 2013

GLOBAL ENERGY DEVELOPMENT PLC

(the "Company")

RESTRUCTURING OF NOTES PAYABLE

Global Energy Development PLC, the Latin America focused petroleum exploitation, developmentand production company (AIM: GED) with operations in Colombia announces that on 11 March2013 it restructured itsexisting current debt obligations, the Senior Secured Note Payable for the principal amount of US$5 million and the Fixed Rate Note Payable for the principal amount of US$12 million, respectively, with HKN, Inc. ("HKN") into one new amortising Note Payable ("Note Payable") in the principal amount of US$17 million. The new Note Payable is not convertible into shares and is subject to an interest charge of 12.75 per cent per annum, payable quarterly in arrears. The first principal payment of US$500,000 is due on 31 March 2013 with payments of US$1.5 million due quarterly beginning 30 June 2013 through 31 March 2015. The final principal payment of US$4.5 million is due and payable on 15 June 2015. The interest rate will increase to 13.50% in the event that any of GED's semi-annual earnings report reflects either lower profit from operations or cash flow from operations than was reported in the comparable prior year report. The Note Payable is unsecured, but HKN can require the Company to provide adequate collateral security in certain events.

In exchange for this restructuring, the Company paid to HKN a one-time 2% arrangement fee of $340,000.

HKN and parties acting in concert with it are interested in 22,003,616 Global shares, representing approximately 60.93 per cent. of the issued share capital of Global. By virtue of these holdings, the amendment to the Note Payable constitutes a related party transaction under the AIM Rules. With the exception of Mr. Mikel Faulkner, who is a director of HKN, the Company's Directors consider, having consulted with Northland Capital Partners Limited, the Company's Nominated Adviser, that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.

For further information please contact

Global Energy Development PLC

 
 Anna Williams, Finance Director    +001 817 310 0240 
  awilliams@globalenergyplc.com 
   www.globalenergyplc.com

Buchanan (Financial PR)

 
 Tim Thompson            +44 (0)20 7466 5000 
 Ben Romney 
 
 
 Northland Capital Partners Limited 
                                        +44 (0)20 7796 
  Louis Castro                           8800

Lauren Kettle

This information is provided by RNS

The company news service from the London Stock Exchange

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