4 Feb 2011 07:00
Immediate Release | 4 February 2011 |
GLOBAL ENERGY DEVELOPMENT PLC
(the 'Company')
EXTENSION OF LOAN AGREEMENT
Global Energy Development PLC, the Latin America focused petroleum exploration and production company (LSE-AIM: "GED"), announces that on 3 February 2011 it agreed a one year extension of the maturity date of its senior secured note with HKN, Inc. for a principal amount of US$5 million (the "Loan Agreement"). The repayment of the loan is now due on 15 September 2012.
In exchange for this extension the Company agreed to increase the interest charge by 0.5% to 10.5%, with effect from the date the extension was granted.
By virtue of HKN, Inc.'s 33.56% holding in the Company, the Loan Agreement constitutes a related party transaction under the AIM Rules for Companies. With the exception of Mr. Mikel Faulkner, who is a director of HKN, Inc., the Company's Directors consider, having consulted with Matrix Corporate Capital LLP, the Company's Nominated Adviser, that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.
For further information:
Global Energy Development PLC
Patrick Garo, CFO and Company Secretary | +44 (0)20 3178 5156 |
www.globalenergyplc.com |
Matrix Corporate Capital LLP
Louis Castro Tim Graham | +44 (0)20 3206 7000 |