One would hope that the ad hoc committee of BH (who will have reps. ??? who are the reps - ?? Blackstone) would have learned from the painful (Afren) previous experience.......and if D4E proposed...is not as penal as that proposed previous (Afren).....
Agree to PC (and you) that bond buyback would be great (just need the cash from somewhere - KRG - 'white rabbit' time).
Many co's buy back there bonds on the cheap....Enterpris Inns for example.....
Fingers crossed for pi's here.....
Note - the same 'doom merchants' are still here ??
Really! Utter scaremongering nonsense; as that is clearly the message being peddled. Should, as Paul Curtis suggests, the Equity holders take a considerable beating with our 'Walking Dead' stock. legal action will take place left and right..............If the BH's are unreasonable, no one will come out in good shape....GKP have fully supported Kurdistan and it is they that have defaulted on the PSC.....GKP have honoured the agreement with the BHs and are playing within the rules and it is they that have brought this matter on, not as the media or bond traders will have you consider .....What are you expecting? Massive dilution and the BHs to essentially own the Company and hoc the asset round the market so as to regain the their investment? Not a chance....The KRG wouldn't entertain that and neither will SHs....My own belief is that reasonable terms will be agreed upon to the benefit of all. It's the only acceptable solution... Nothing else will pass share holders and the KRG, as both certainly have significant parts to play...October 17 it is not!! OK off out for a festival of rugby....I'll leave the board to the great unwashed. Good things the genuine..
Durby if you are going to repost articles to shove my posts down the queu and out of peoples sight then I will do likewise
Paul Curtis/post by SteelerD on iiiToday 13:14someone on iii has just come out with a statement that suggests that the 255 Bondholders who are not onboard would be happy to accept a loss on the bonds if it meant getting their hands on the rights to sell on the Shaikan PSC ...
at least that is my reading of what he implies. In other words Certain Bondholders took up the Bonds with a deliberate strategy of losing big on the Bonds but Profiting big from a subsequent sale having gained control of Shaikan from the Shareholders.
Paul Curtis - any comments ? Im still waiting for you to respond to my earlier post re. Afren similarities . Not the Debt Paul Curtis , nor the likely Form of any Restructuring. I would like your comments on similarities between Afren and GKP in the run up to both discussions with their Bondholders. also re. hear your response to my question about Sothic and Capeview Capital - that they are waiting for 2p not 3p ? So how much are they short per point to make that extra 1 pence so worthwhile ?
And you mention that any Brokers report that you've seen values GKP post restructuring at 2p . Why have us Shareholders not seen these reports ? Who are the Brokers you speak of ?
"Bondholders will not be in a unified view, a sufficient number can threaten to default the company, take all the cash balances, and novate the whole PSC to any bidder who can give them a materially better return than the current mark to market on their holdings - for some bondholders this will even mean a very healthy profit on when they bought the bonds. For bondholders this is a distressed asset - dont assume they are negotiating to come out at par. They may be very satisfied to come out at much less of a loss upfront instead."
Gulf Keystone Petroleum Ltd (LON:GKP) has announced a standstill agreement with the bulk of its lenders while it arranges a more permanent debt restructuring.
Broker Mirabuad believes a restructuring deal is likely to involve a debt for equity swap and some form of capital injection.
The standstill agreement runs until 20 May, extendable until 31 May, and covers holders of up to 75% of each class of the loan notes and bonds.
Gulf Keystone added it will not pay the US$26mln coupon due in April, but failure to make payments after that may trigger a default notice from the debt holders that have not signed the standstill agreement.
In that event, the standstill signatories will not approve any demand for immediate repayment while the agreement is still in place.
Gulf Keystone has debts US$575mln, most of which are due to mature next year.
It has already warned it needs to spend US$71mln on its Shaikan field in Kurdistan to maintain production at 40,000 barrels of oil per day, and to grow production to 55,000 bopd, as previously targeted, a capital investment of US$88mln would be needed.
Shares fell 3% to 5p valuing the company at £49mln.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.