Publication of Bond Restructuring Proposals

RNS Number : 4235J

Echo Energy PLC

09 April 2020

 

9 April 2020

Echo Energy plc

("Echo" or "the Company") 

Publication of Bond Restructuring Proposals

Echo Energy, the Latin American focused upstream oil and gas company, announces, further to the Company's announcement of 1 April 2020, that following constructive discussions with certain holders of the Company's Luxembourg listed EUR 20.0m 8.0% secured notes (the "Notes") it has today published its proposals (the "Proposals") in respect of a restructuring of the Notes and that a meeting of the holders of the Notes (the "Noteholders") has now been convened to consider the Proposals for 10:00 a.m. on 1 May 2020 (the "Noteholder Meeting").

Pursuant to the Proposals, and in addition to seeking the consent of the Noteholders to waive the event of default in relation to the non-payment by the Company of quarterly Note interest on 31 March 2020, the Company is seeking Noteholder consent to defer quarterly Note interest payments which would otherwise be due on 31 March 2020, 30 June 2020, 30 September 2020 and 31 December 2020 (the "2020 Interest Payments") such that the 2020 Interest Payments will be payable by the Company on maturity of the Notes in May 2022. Notwithstanding the proposed deferral of the 2020 Interest Payments, the Company will continue to be required to make quarterly interest payments on the Notes in 2021 and 2022.

Additionally, the Company is also proposing to grant security in the form of a share charge over 100% of the shares in Echo Energy Argentina Holdings Limited. Such security will be shared pari passu between the Noteholders and Lombard Odier Asset Management (Europe) Limited in its capacity as lender under the Company's EUR 5.0m 8.0% secured convertible debt facility (the "EUR 5m Loan").

A copy of the circular today sent to Noteholders is available on the Company's website at www.echoenergyplc.com/

The Company also confirms that, following entry of an amendment to the Company's existing £1.0m secured loan and the publication of the Proposals, constructive negotiations in respect of an amendment to the EUR 5m Loan to defer 2020 interest payments continue and the Company looks forward to updating shareholders on the amendment to the EUR 5m Loan shortly.

For further information, please contact:

Echo Energy Martin Hull, Chief Executive Officer	via Vigo Communications
Vigo Communications (PR Advisor) Patrick d'Ancona Chris McMahon	[phone]
Cenkos Securities (Nominated Adviser) Ben Jeynes Katy Birkin	[phone]
Shore Capital (Corporate Broker) Jerry Keen	[phone]

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.

 

END

 

 

MSCUPUQGCUPUGCB