The interest on the notes, 8%, can now be deferred until March 2021.
A requisite majority of votes were cast in favour of the restructuring, with votes representing €8.1mln cast by noteholders, unanimously in favour of the proposals.
It means that agreements are in place to restructure all of the Company’s existing debts to defer all cash interest payments.
Chief executive Martin Hull, in a statement, said it provides “renewed optimism” and management will now refocus efforts to pursue growth opportunities in its portfolio.
“Echo is delighted to confirm receipt of noteholder approval for the restructuring of the company’s €20.0m secured notes which, following similar agreements to amend the company’s other secured debts, successfully draws a line under the recent period of uncertainty for the company,”
“Combined with uninterrupted production, improved near term gas pricing recently announced, field cost efficiencies achieved at Santa Cruz and Argentinian Government initiatives to support domestic Argentinian producers, the successful completion of the debt restructuring is an important and positive step forward for the company.”
Echo on Wednesday told investors that its production and operations have continued uninterrupted amid the coronavirus (COVID-19) pandemic and remains in-line with expectations.
In a statement on its operations in Argentina, Echo said that net production averaged 2,250 barrels oil equivalent (boe) per day or 310,474 boe in aggregate in 2020 to date.
It has also recently been supported by oil price intervention in Argentina and a reduction in VAT on domestic sales.
Published at Fri, 22 May 2020 12:25:00 +0000-Echo Energy share jump as it secures financial position at noteholders meeting