5 Sep 2023 16:00
PetroNeft Resources plc
5 September 2023
PetroNeft Resources plc ('PetroNeft' or 'the Company')
COMPANY UPDATE
PetroNeft announces that loan settlement agreements have been concluded with the remaining debt finance holders as reported below.
Background
Following on from the signing of a loan settlement agreement with Petrogrand ("Petrogrand Loan Settlement") announced on 2nd August, the Company has concluded further debt settlement agreements with all parties to the Company's remaining three term loan facilities.
Debt Type | Balance - (US$ M) | Concession % (on Principal) | Concession % (on Interest) | Cash Settlement (US$ M) |
2019 Convertible notes | 0.63 | 90% | 100% | 0.05 |
2021 Convertible notes | 1.29 | 90% | 100% | 0.10 |
Convertible loan from Belgrave Naftogas B.V. | 1.07 | 90% | 100% | 0.08 |
Total | 2.99 | 90.0% | 100% | 0.23 |
The terms of the loan settlement agreements are:
· PetroNeft to pay US$0.23M representing 10% of outstanding principal of US$2.3M within seven days of receiving funds from the sale of Lineynoye LLC (owner of Licence 67).
· Lenders will waive 100% of the accumulated interest (US$0.69M).
· The cash settlement amounts will be amended for any withholding tax deducted at source in Russia and any adverse Rouble/Dollar exchange movements.
· The loan agreements are conditional on the successful closure of the sale of Lineynoye LLC. PetroNeft announced on 14th June 2023 that it had entered into a non-binding conditional Heads of Terms to sell its entire interest in Lineynoye LLC, the subsidiary through which the Company holds its interest in Licence 67, to Pavel Tetyakov (CEO of PetroNeft).
These agreements, together with the Petrogrand Loan Settlement, reduce the outstanding debt as of 30th June 2023 from US$5.64m to US$0.92M.
Natlata Partners Limited holds c. US$196,000 and US$138,000 of the 2019 Convertible notes and 2021 Convertible notes respectively. Natlata Partners Limited is a major shareholder of PetroNeft. Consequently, this aspect of the debt restructuring when aggregated with the Petrogrand Loan Settlement constitutes a related party transaction pursuant to the AIM and Euronext Growth Rules.
The directors of the Company, having consulted the Company's nominated advisor and Euronext Growth adviser, consider the terms of the loan settlement agreement with Natlata Partners Limited to be fair and reasonable insofar as the Company's independent shareholders are concerned.
For further information, contact:
Pavel Tetyakov, CEO, PetroNeft Resources plc | +353 1 6470280 |
Brian Garrahy/Ciara Mongain, Davy (NOMAD and Euronext Adviser) | +353 1 679 6363 |
Paul O'Kane, Murray Consultants | +353 1 498 0300 |