(Alliance News) - Premier Oil PLC on Monday said that its request to commence its restructuring plans have been granted by the court, allowing the company to convene the creditor meetings for the plans, which will be held on February 22.
The restructuring plans are required for the implementation of the all-share merger between the FTSE 250 oil & gas firm and Harbour Energy's UK operating firm Chrysaor, as well as the reorganisation of Premier's existing debt and cross currency swaps.
Premier Oil said that the required level of its creditors have irrevocably undertaken to vote in favour of the restructuring plans at the meetings.
Once the transaction is completed, creditors will be entitled to receive their proportionate share of an upfront cash payment of USD1.23 billion, and new shares in the combined group, or a share of a further cash payment capped at USD175 million, if they choose to do so.
This is in exchange for the cancellation of the company's debt.
Shares in Premier Oil were down 4.0% at 18.60 pence on Monday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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