IGAS.L Regulatory News (IGAS)

26 October 2016

IGas Energy plc (AIM: IGAS)

("IGas" or the "Company")

Result of Bondholder meetings

As announced on 12 October, the Company forecasted non-compliance with its daily liquidity financial covenants in the second half of October and issued a bond summons calling for bondholder meetings to seek a temporary waiver of its daily liquidity covenants, to amend certain notice provisions for bondholder meetings and allow a written resolution procedure ("Summons"). The bondholder meetings were held earlier today.

The bondholder meeting in respect of the secured bonds was quorate (68.6% of the Voting Bonds were represented at the meeting). 43.6% of the secured bonds that voted, voted in favour of the waiver requests.

The bondholder meeting in respect of the unsecured bonds was also quorate (56.2% of the Voting Bonds were represented at the meeting). 100% of the unsecured bonds that voted, voted in favour of the waiver requests.

Therefore, the Company's requests in the Summons have been approved by the requisite majorities of the unsecured bondholders and all of the waivers, amendments and authorisations in the Summons have been approved in respect of the unsecured bonds and are now fully effective. The waiver and standstill requests in respect of the secured bonds were not approved.

The Company is currently in compliance with its daily liquidity covenants although the latest cash forecasts indicate that a breach will occur in the week commencing 31 October 2016. In the event of a breach, the Company expects a 10 Business Day grace period to apply to allow it to pursue options, including the sale of bonds or other assets, and expects to remedy any such breach before an Event of Default in respect of the secured bonds occurs.

Cash position

The Company continues to hold significant cash resources of US$27.5 million (as at 25 October 2016) and US$21.1 million of its own bonds (par value). Notwithstanding the contractual requirements in the daily liquidity financial covenants set out in the bond agreements, the Company therefore continues to meet, and expects to continue to meet, its actual ordinary course financing and trading obligations.

Next steps

The board continues to believe that a consensual solution is possible and that it would be in the interests of all stakeholders.

From its various discussions and the result of the secured bondholders' vote, the board believes that there are divergent views among those bondholders. These include the preference for a capital restructuring of the group or a divestment of its conventional assets. The board will continue discussions with its key bondholders aimed at aligning those views.

At the same time, the board is also continuing to pursue discussions with a number of strategic investors.

The notices from the bondholders' meetings will be posted at Nordic Trustee ASA's website, http://www.stamdata.no.

For further information please contact:

IGas Energy plc

Tel: +44 (0)20 7993 9899

Stephen Bowler, Chief Executive Officer

Julian Tedder, Chief Financial Officer

Ann-marie Wilkinson, Director of Corporate Affairs

Investec Bank plc (NOMAD and Joint Corporate Broker)

Tel: +44 (0)20 7597 4000

Sara Hale/Jeremy Ellis/George Price

Canaccord Genuity (Joint Corporate Broker)

Tel: +44 (0)20 7523 8000

Henry Fitzgerald-O'Connor

Vigo Communications

Tel: +44 (0)20 7830 9700

Patrick d'Ancona/Chris McMahon