LONDON (Alliance News) - Circle Oil PLC on Friday said International Finance Corp has agreed to extend the suspension of the December 2015 redetermination and any repayments due under its reserve-based lending facility.
Circle Oil produces gas and condensate in Egypt which is sold to state-owned Egyptian General Petroleum Corp, but Circle Oil has been working on the commercial terms of those payments since last year and has failed to strike a deal as of yet.
As a result, Circle Oil is having to extract funds from its Moroccan operations and rely on its lenders providing further repayment extensions.
IFC provided Circle Oil with another extension on Friday, giving Circle Oil until June 24 to repay the amounts due under the reserve-based lending facility. There is a good chance further extensions will be granted if the company remains in trouble, as the lender has said it is willing to consider future waivers, Circle Oil said.
The facility provided by the creditor, which is the World Bank's private sector lender, was drawn to USD57.5 million back in March.
One of the reasons IFC is providing extensions is because Circle Oil is currently conducting a strategic review which could potentially lead to the sale of the business.
Circle Oil shares were untraded early Friday, having last traded at 0.60 pence.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
