Xcite Energy has noted the recent rise in its share price and provides an update on the restructuring of its $135 million senior secured bonds issued by Xcite Energy Resources plc.
As announced in its full year results for the year ended 31 December 2015 on 21 March 2016, the Company has been in discussions with its principal Bondholders with respect to a potential restructuring of the Bonds and, on 16 June 2016, it subsequently announced an extension to the maturity of the Bonds until 30 September 2016 in order to continue those discussions and allow it to resolve terms for restructuring the Bonds.
At the time of this maturity extension, the Company highlighted that while those discussions had been constructive, no terms had yet been agreed, and that should agreement on the terms of a restructuring be reached, it was likely that this would involve a reduction in the balance of the Bonds in return for an equity stake in the Company.
Whilst terms of the restructuring have still to be agreed, the Company now believes that there will be a minimal residual equity stake attributed to the Company's existing shareholders following the restructuring.
The Company will update shareholders as soon as any further information relating to the restructuring of the Bonds can be made available.