LONDON (Alliance News) - Oil company Xcite Energy Ltd on Thursday said Nordic Trustee ASA has called a bondholders' meeting to be held on June 30.
Nordic Trustee acts as trustee for the holders of the USD135 million senior secured bonds issued by Xcite, which has been in discussions with its principal bondholders regarding a potential restructuring of the bonds.
Xcite said that while negotiations have been "constructive", no terms have yet been agreed. However any agreement is likely to involve a reduction to the balance of the bonds in return for an equity stake in the company.
In order to continue these negotiations, Xcite has requested a short-term extension to the bond maturity date to September 30 from June 30.
Xcite is also requesting amendments to the bond agreement to reduce the notice period for a bondholders' meeting to five business days from ten business days, and to allow a written resolution procedure to be used instead of a bondholders' meeting to simplify and speed up the voting process for bondholders when restructuring terms are agreed.
As a condition for the bondholders' meeting approving the amendments to the bond agreement, Xcite is required to pay a consent fee to the bondholders totalling 1% of the principal amount of the outstanding bonds as at June 30, payable either in cash or through the issue of additional bonds to the bondholders.
Xcite added that bondholders holding in excess of 93% of the outstanding bonds have indicated their support for the proposed amendments.
Shares in Xcite were trading down 8.1% at 10.00 pence on Thursday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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