Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers Tenders > Headlines for 2016 > News item |
Sterling Resources misses bond repayment deadline, seeks more time
New York, Feb. 29 – Sterling Resources Ltd. said it has failed to meet a Feb. 29 deadline to redeem the $180 million senior secured bond issued by its Sterling Resources (UK) Ltd. subsidiary.
The company called a meeting of bondholders for March 7 to approve “short extensions” to the various deadlines agreed earlier.
Under the proposed changes, the last date to redeem the bond will be pushed back to April 1 from Feb. 29 and the deadline for the Oct. 30, 2015 bond amortization installment will be moved to March 15 from Feb. 29.
In addition, bondholders will be asked to eliminate a requirement to provide a certificate to the bond trustee on progress, reduce the minimum level of unrestricted cash that must be held by Sterling Resources (UK) to $5 million from $10 million during the period from Feb. 29 to March 31, and extend the five-day notice period for summoning a bondholder meeting until June 1.
Sterling said the changes will allow it to complete negotiations for a recapitalization.
Bondholders approved various amendments and waivers on Nov. 6 that required Sterling to redeem the bond in cash by Feb. 29.
Sterling said on Monday it has not been successful in achieving a strategic transaction or restructuring by that date but said that discussions are continuing between the company, the bond trustee and a group of bondholders who own more than two thirds of the bonds about a recapitalization.
Details of the recapitalization are expected to be announced in the next two weeks, the company added.
Sterling Resources is a Calgary, Alta.-based oil and gas company with assets in the United Kingdom, France and the Netherlands.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.