(Alliance News) - Nostrum Oil & Gas PLC on Wednesday said it is in advanced talks with its note holders after a failure to pay interest due on its 8.0% senior notes due 2022 and 7.0% senior notes due 2025.
The company is engaged in production, development, and exploration of oil and gas in the pre-Caspian basin. It is now in advanced discussions with the financial and legal advisers to a steering committee of note holders, namely PJT Partners UK Ltd and Akin Gump Strauss Hauer & Feld.
The talks concern entry into a forbearance agreement with certain note holders relating to the interest payments. Nostrum intends to invite other note holders to enter the forbearance agreement once entered into.
An event of default has already occurred on Nostrum's 8.0% 2022 notes, which were issued by Nostrum Oil & Gas Finance BV, resulting from the issuer's non-payment of interest due and payable on July 23 and subsequent expiration of a 30-day grace period.
No interest payment was made on the 7.0% 2025 notes either when it was due and while the 30 day grace period has not ended, no interest payment is expected to be made before it expires.
Shares in Nostrum were down 0.9% at 10.52 pence in London on Wednesday morning.
By Anna Farley; annafarley@alliancenews.com
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Nostrum Oil&gas (NOG)