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Sterling Resources given until April 1 to make 9% bond repayment
By Angela McDaniels
Tacoma, Wash., March 7 – Sterling Resources Ltd. subsidiary Sterling Resources (UK) Ltd. has been given more time to redeem its $180 million 9% senior secured bond issue 2013/2019.
At a meeting on March 7, bondholders voted to extend the deadline to April 1 from Feb. 29. There were enough bondholders present to form a quorum, and the proposed resolution received 100% of the votes, according to a notice from trustee Nordic Bond Trustee ASA.
In addition to the extension of the redemption deadline, the deadline for the Oct. 30, 2015 bond amortization installment was extended to March 15 from Feb. 29, the requirement that the company provide a certificate to the bond trustee on progress was eliminated, the minimum level of unrestricted cash that must be held by Sterling Resources (UK) was reduced to $5 million from $10 million during the period from Feb. 29 to March 31, and the five-day notice period for summoning a bondholder meeting was extended 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 bonds in cash by Feb. 29.
On Feb. 29, Sterling said it had not been successful in achieving a strategic transaction or restructuring by that date but said that discussions were continuing between the company, the bond trustee and a group of bondholders who own more than two-thirds of the bonds about a recapitalization.
Sterling Resources is a Calgary, Alta.-based oil and gas company with assets in the United Kingdom, France and the Netherlands.
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