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IGas Energy in talks with strategic investor

Staff Writer |
Oil and gas explorer IGas Energy confirmed it is in negotiations with a strategic investor in order to restructure the company due to the low price of oil.

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IGas Energy said that discussions with the strategic investor and other stakeholders and investors are ongoing and stressed that there is "no certainty that an agreement will be reached or that a transaction will be forthcoming".

The company's current forecasts project non-compliance with its leverage covenants as at 31 December and its position remains that "in the event of a breach of the leverage covenants, an equity cure provision exists within the bond agreements, such that a breach can be cured within 25 business days of the delivery of the compliance certificate".

For the 12 months ending 31 December, the compliance certificate must be delivered by 30 April 2017, and the latest date for any equity cure would be in early June.

It said it expects the potential transaction would remedy any leverage covenant breaches as at 31 December and the forecast breach of the daily liquidity covenants.

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