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Iona Energy bonds accelerated; holders to receive $50 million payment
By Caroline Salls
Pittsburgh, Dec. 22 – Iona Energy Co. (UK) Ltd.’s 9˝% senior secured callable bonds due 2018 were accelerated, and the bond trustee will pay $50 million to the bondholders on Dec. 30, according to a notice released Tuesday by trustee Nordic Trustee ASA.
In addition to accelerating the bonds, the trustee said it enforced the pledge of an escrow account and took control of the $57 million held in the account. The bondholder payment will be made using funds from that account. The trustee will retain the balance as an escrow retention amount.
The payment will be made to bondholders of record as of Dec. 28 and covers principal only. Specifically, the trustee said the payment will equal 16.105694% of the outstanding principal amount of the bonds.
According to a separate release, the bondholders unanimously approved changes to the bond agreement at a meeting held Monday.
As previously reported, the company sought approval from the bondholders to carry out some potential restructuring transactions. Specifically, Iona said it needed bondholder consent to dispose of or relinquish – and to agree to the release of security over – the relevant assets that are affected by the transactions, which are aimed at maximizing recoveries to bondholders and achieving an orderly wind-down of the company.
Iona Energy Inc. recently announced that Iona Energy (UK) and Iona UK Huntington Ltd. will begin insolvency procedures to protect the interests of their stakeholders. Parent company Iona Energy and the Huntington subsidiary are the guarantors of the 9˝% bonds.
Iona Energy is a Calgary, Alta., oil and gas company with assets in the United Kingdom’s North Sea.
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