(Alliance News) - Echo Energy PLC on Friday said that, following the completion of its balance sheet restructuring, it has made an application for over three billion shares to be admitted to trading on AIM.
Echo Energy is a Latin America-focused energy company, currently producing from its Santa Cruz Sur project, onshore Argentina.
The company on Friday said it has completed its restructuring of both its Luxembourg-listed EUR20.0 million, 8.0% secured notes, and its EUR5.0 million, 8.0% secured convertible debt facility.
Following this news, it has made an application for 3.57 billion new ordinary shares to be admitted to trading on AIM.
The restructuring of the notes and the facility will complete on admission, with an aggregate of EUR15.0 million of debt principal, together with accrued interest thereon, having been converted into the new ordinary shares.
Following admission, the company's issued ordinary share capital will comprise 5.53 billion ordinary shares, none of which are held in treasury.
"Completion of the restructuring of the company's balance sheet is a very significant and positive milestone for Echo Energy. I would like to thank our note and debt holders, and of course Echo's shareholders, for their continued support," said Chief Executive Officer Martin Hull.
"With our ambitious strategy to increase production and value in Santa Cruz sur, we remain focused on delivering on our operational and commercial goals."
Echo Energy shares were trading 4.7% lower at 0.23 pence each in London on Friday afternoon.
By Holly Beveridge; hollybeveridge@alliancenews.com
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Echo Energy (ECHO)