Business
Update on terms of proposed capital restructuring
Update on terms of proposed capital restructuring.
About this update from Star Energy Group Plc
[{"type":"text","content":"\n \nRNS Number : 1134Z Igas Energy PLC 10 March 2017 \n\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM\nANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF\nTHE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION\n \n10 March 2017\nIGas Energy plc (AIM: IGAS)\n(\"IGas\" or the \"Company\")\n \nUpdate on terms of a proposed capital restructuring \n \nIGas is pleased to announce an update to its restructuring discussions. On 1 March 2017, IGas announced that it was in well-progressed discussions in relation to a potential investment of US$35 million of equity from Kerogen Capital, together with a proposed capital restructuring of the Company which included seeking additional equity funding and a restructuring of the Company's secured and unsecured bonds.\nSince that announcement, all of the bondholders that the Company has spoken to have indicated their support to the terms set out below which, if approved, would result in a substantial deleveraging of the business alongside the investment from Kerogen Capital. The Company has received indications of support from approximately 66⅔% of the secured bondholders and approximately 40% of the unsecured bondholders.\nThe Company will seek to raise additional equity funding of up to US$30 million and existing shareholders will be given the opportunity to participate in an open offer at a placing price of 4.5p per share (the \"Issue Price\"). \nThe Company believes that this new capital structure would be sustainable in the current oil price environment such that the Company is well positioned to capitalise on value accretive opportunities alongside its US$230 million carried work programme.\nKey highlights:\n· proposed new equity investment of up to US$35 million by the issue of new ordinary shares to Kerogen Capital at the Issue Price, as a new investor (subject to potential adjustment to achieve a resultant interest of 28%) (the \"Kerogen Subscription\");\n· proposed additional equity raise of up to US$30 million by way of a placing of shares with institutional and other investors in exchange for new ordinary shares at the Issue Price (the \"Placing\");\n· proposed open offer to exist...