Iona Energy bondholders approve sale to Decipher Energy

New York, March 10 – Iona Energy Co. (UK) Ltd. said that holders of its 9˝% secured callable bond issue 2013/2018 approved the sale of the company’s share capital to Decipher Energy Ltd. at a meeting held Friday.

Sufficient bondholders were present to form a quorum and 99.54% of votes were cast in favor of the resolution, according to a notice from bond trustee Nordic Trustee ASA.

Iona announced the meeting on March 3.

As previously reported, Iona’s joint administrators and the bond trustee entered a conditional share sale and purchase agreement with Decipher Energy on Feb. 21.

Under the agreement, Decipher will acquire the Iona shares for $1.00.

In addition, Decipher will fund or otherwise cause Iona to procure a $2 million payment upon completion of the agreement to allow distributions to Iona’s creditors under a voluntary arrangement, a $1.5 million repayment of the principal amount of the bonds and a $495,030 payment for participants of Iona’s management incentive plan.

Following the reduction of the outstanding bonds and any interest to $5 million and the $1.5 million payment, Decipher would fund or cause Iona to procure the funding for the repayment of $3.5 million of the bonds, subject to deferred payment conditions.

The conditions include an extension or continuation of an Orlando license until at least June 30, 2018 or the granting of a new license.

At Friday’s meeting, bondholders were asked to approve a pre-completion agreement, approve the trustee making a demand against a Huntington subsidiary guarantee, approve entry into a June 2016 New West Wick working interest sale agreement, approve a release of bond debt down to a principal amount of $5 million, authorize a payment plan and authorize payments of various costs and expenses.

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

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