LONDON, Sept 25 (Reuters) - Premier Oil is asking
debt holders to extend a waiver on its borrowing terms beyond
Sept. 30 while it tries to convince at least 75% of its
creditors to back a plan to raise fresh equity, a source with
knowledge of the matter said on Friday.
Premier has to reach this creditor approval threshold before
it can officially start an attempt to raise $530 million, which
it needs to ward off a debt crunch and go through with buying
assets from BP to boost its production.
Premier declined to comment.
It needs to raise at least $325 million in fresh cash for
the plan to succeed. A source with knowledge of the matter said
last week Premier had received indicative, non-binding support
in excess of $325 million.
Meanwhile, Premier is also in talks with rival private
equity-backed North Sea producer Chrysaor for an alternative
deal to solve these issues.
Premier's biggest creditor, hedge fund ARCM, was due on
Friday to auction $200 million of Premier debt at 72 cents to
the dollar, but has not yet published results of the sale.
ARCM prefers pursuing the alternative talks to Premier's
plan to raise capital, according to a source close to its
thinking.
(Reporting by Shadia Nasralla, additional reporting by Clara
Denina, editing by Dmitry Zhdannikov and Mark Potter)
BP (BP.)