12 October 2016
IGas Energy plc (AIM: IGAS)
("IGas", the "Issuer", the "Group" or the "Company")
Bond Summons: Temporary Waiver
Further to the interim results announcement on 30 September 2016, in which IGas reported, inter alia, that it forecasts non-compliance with the daily liquidity covenant in the second half of October and it was exploring a number of options including seeking a temporary waiver from its bondholders, the Company has today issued bond summons to seek a temporary waiver of its daily liquidity covenant and to amend certain notice provisions for bondholder meetings and allow a written resolution procedure. This temporary waiver is intended to provide a platform for discussions with the Company's stakeholders in order to reach an agreement on a sustainable capital structure for the Group.
As stated previously, the Issuer continues to hold significant cash resources of US$27.6 million (as at 27 September 2016) and US$21.1 million of its own bonds (par value), and expects to be able to continue to meet its ordinary course financing and trading obligations for a sustained period of time including during and after the proposed waiver period.
IGas continues to pursue other options to maintain compliance with its liquidity covenant, including the sale of bonds or other assets or entering into a pre-paid swap of its oil production in 2017.
At the same time, IGas continues to pursue discussions with a number of strategic investors and is evaluating options for cash and earnings accretive transactions, including farm-outs and other asset portfolio management opportunities to improve its cash position and de-leverage its balance sheet to achieve a capital structure that is sustainable in the current oil price environment, as well as enabling the Company to capitalise on value accretive opportunities.
The bondholders' meetings will be held on 26 October 2016, and, if the terms of the summons are approved, the temporary waiver and amendments to the terms of the bonds shall become effective immediately. A copy of the Summons will be available at www.stamdata.com and http://www.igasplc.com/investors/company-publications.
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
Tel: +44 (0)20 7830 9700
Patrick d'Ancona/Chris McMahon
This information is provided by RNS