Iona Energy bond trustee to distribute $6 million; share sale possible

By Caroline Salls

Pittsburgh, Dec. 15 – The trustee for Iona Energy Co. (UK) Ltd.’s 9½% senior secured callable bond issue 2013/2018 plans to make a $6 million principal payment to bondholders from an escrow retention amount, according to a notice released by bond trustee Nordic Trustee ASA.

The trustee said those funds are available for distribution since Bridge Petroleum 2 Ltd. has decided not to complete a proposed purchase of Iona’s shares.

The record date for the distribution will be the close of business on the date of a Dec. 22 bondholders meeting. The distribution will be made five business days after the record date.

In addition, the trustee said Iona’s joint administrators signed an exclusivity agreement with a party interested in purchasing the company’s shares in an alternate transaction.

The administrators are looking to complete the interest sale by Jan. 31.

Since the term of the administrators is scheduled to expire on Jan. 6, the trustee said an up to one-year extension of that term has been proposed and will be voted on at the Dec. 22 bondholders’ meeting.

Iona Energy is a Calgary, Alta.-based oil and gas company with assets in the United Kingdom’s North Sea.

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