Echo Energy set to complete its debt restructuring

(Sharecast News) - Latin America-focussed Echo Energy announced the completion of its debt restructuring and issue of equity on Friday.

The AIM-traded firm was restructuring its Luxembourg-listed €20m, 8.0% secured notes and its €5m, 8.0% secured convertible debt facility.

It had now made an application for 3,570,766,386 new shares to be admitted to trading on AIM, which was expected to occur at 0800 GMT on 8 December.

As a result, the restructuring of the notes and the facility, first announced on 12 August and approved by shareholders and noteholders, would complete on admission, with a total of €15m of debt principal, together with accrued interest, having been converted into the new shares.

"Completion of the restructuring of the company's balance sheet is a very significant and positive milestone for Echo Energy," said chief executive officer Martin Hull.

"I would like to thank our note and debt holders, and of course Echo's shareholders, for their continued support.

"With our ambitious strategy to increase production and value in Santa Cruz sur, we remain focused on delivering on our operational and commercial goals."

At 1219 GMT, shares in Echo Energy were down 4.74% at 0.23p.

Reporting by Josh White for Sharecast.com.