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KrisEnergy says terms for proposed bond restructuring are final
KRISENERGY reiterated on Thursday that the terms it has proposed for the restructuring of its notes are final.
In a Singapore Exchange filing, the oil and gas exploration and production firm said that it has sought the feedback of noteholders before the consent solicitation exercise was launched, and taken into account their views. The company has implemented suggestions where possible, such as adding an oil price-linked coupon.
A group of KrisEnergy's noteholders are demanding higher coupon rates and a shorter extension period, and also asking the company to commit itself to a more restrained and disciplined capital expenditure programme.
KrisEnergy said that it is aware of certain views expressed regarding the financial restructuring process. It added that the terms and conditions of the consent solicitation exercise are final.
Furthermore, if any material changes to the terms of the notes or the preferential offering were to be made, more disclosure would be required, and the noteholder meetings will be adjourned to a date later than Dec 9, the due date for its coupon on the 2017 notes, it added. This could potentially lead to a default on the existing notes, and trigger off cross-default/cross-acceleration clauses on other loans.