* Creditors poised to choose future path for Premier
* Potential Chrysaor deal still on table
* Little interest in debt auction at 72 cents/dollar -source
(Adds detail on ARCM debt auction, alternative deal)
By Shadia Nasralla and Clara Denina
LONDON, Oct 1 (Reuters) - Creditors of Premier Oil
have extended a waiver for the group's debt covenant test until
Nov. 5, Premier said on Thursday, granting it breathing space to
avoid an immediate debt crunch and work on a longer-term plan.
Premier needs to convince at least 75% of its creditors that
the best solution is for the company to extend debt maturities
to 2025 and try to raise $530 million, part of which would be
spent on buying assets from BP to boost
production.
In August, Premier said it had 45% of creditors on board. It
did not provide an updated tally on Thursday.
"Premier's creditors have approved an extension to the
previously announced Stable Platform Agreement with the group's
financial covenants waived through to 5 November 2020," Premier
said after its previous waiver ran out on Wednesday.
"Discussions continue relating to the proposed refinancing
and possible alternative transactions."
Premier, saddled with about $1.9 billion in net debt, is in
talks with rival Chrysaor on an alternative deal.
Backed by private equity firms EIG Global Partners and
Harbour Energy, Chrysaor is one of many private companies that
have ploughed billions of dollars into energy investments in the
North Sea, with a view to possible stock market flotations.
Chrysaor would not buy any debt in a potential deal, a
source with knowledge of the matter said. Typically, debt
holders take precedence over shareholders in a liquidity crunch.
Premier Oil hired investment banks RBC Capital Markets and
Jefferies, while Barclays and Bank of Montreal (BMO) are
advising Chrysaor, the sources said.
Premier's biggest creditor, hedge fund ARCM, held an auction
for $200 million of Premier's debt last week at 72 cents to the
dollar but attracted limited interest, according to a source
close to matter.
Premier, ARCM and Chrysaor declined to comment.
(Additional reporting by Ron Bousso
Editing by David Goodman)
BP (BP.)