InterOil bondholders unanimously approve three-month payment deferral

By Caroline Salls

Pittsburgh, Jan. 2 – InterOil Exploration & Production ASA voted unanimously at a Friday meeting to defer to March 14 the interest payment due Dec. 14 on its 15% senior callable bond issue 2010/2016, according to a notice from bond trustee Nordic Trustee ASA.

As previously reported, InterOil was seeking the deferral to give it more time to explore refinancing options.

To strengthen the financial position of the company, the trustee said InterOil has initiated a refinancing process. In addition, subsidiary Interoil Exploration and Production Latin America AS was recently divested in an effort to facilitate a sustainable refinancing solution or other strategic options for the company.

The trustee said the company’s Puli-C field, a key asset, requires new investments to maintain output at its current level.

According to a December notice, InterOil has worked in recent months on potential mitigating actions and solutions for addressing its financial difficulties.

Nordic trustee said the payment deferral is required in light of the company’s current financial position and the fact that it is unable to make the payments without prejudicing some groups of creditors.

Under the approved change, interest from and including the Dec. 14 payment date but excluding the deferred payment date will accrue at the current rate plus 5%.

During the deferral period, no default or termination rights will be exercised unless the restructuring is abandoned, any enforcement or acceleration action is taken by lenders in connection with any other debt of InterOil Colombia Exploration & Production Inc. and any of Interoil Colombia Exploration & Production’s exploration or production licenses or onerous license conditions are imposed.

In addition, the rights can be exercised if the issuer or any subsidiary becomes subject to the appointment of a liquidator, bankruptcy trustee, receiver, administrative receiver, administrator, compulsory manager or similar officer or a winding-up, dissolution, administration or statutory reorganization.

The rights can also be exercised if InterOil’s shareholders or any of the former shareholders of Proseis AG rejects a restructuring proposal for which their approval is sought or if the company proposes a restructuring not agreed in advance with an informal committee established by bondholders or that the committee concludes it will be unable to support.

InterOil is an Oslo-based exploration and production company.

© 2015 Prospect News.
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