PA Resources asks bondholders to further defer payments to April 30

By Caroline Salls

Pittsburgh, March 24 – PA Resources AB is asking bondholders to approve a further deferral of the interest payments and amortizations on all of its debt facilities until April 30 while it continues talks with stakeholders on a long-term business plan and a financing plan for the development and maturity of its asset portfolio, according to a notice from bond trustee Nordic Trustee ASA.

As of March 31, PA Resources will owe a total of $33.7 million in interest payments on its working capital facility, Reserve Bank lending facility, NOK bonds and SEK bonds. Of that total amount, $28.3 million is related to interest payments, with $10.1 million due on the NOK bonds and $18.2 million on the SEK bonds.

Given its current liquidity position, the trustee said the company will not be able to satisfy the payments due March 31 in cash.

The bonds originally due in October and scheduled to be due on April 5 will accrue interest at 12¼% from their due date to the deferred payment date.

The payments were originally deferred until Feb. 7, then to March 31.

Votes on the proposal from holders of the company’s 13½% senior unsecured fixed-rate bonds 2013/2016 are due by March 31, and a meeting of 12¼% senior unsecured callable bondholders is scheduled for the same date for their vote on the deferral.

PA Resources is an oil and gas company based in Stockholm.

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