AGR Petroleum seeks bondholder approval for demerger/restructuring

By Jennifer Chiou

New York, Feb. 6 - AGR Petroleum Services Holdings AS announced that it will seek approval to amend the terms of its senior secured bonds due 2018.

AGR Group ASA is the parent and guarantor.

The company is proposing a demerger. AGR Petroleum and its subsidiaries hold interests in oil and gas exploration and production licenses in Israel and 44% of the shares of AGR Energy AS, a company which has applied for exploration and production licenses in Cyprus and Ghana.

The company said that it wishes to separate the interests of AGR Energy AS, transferring all of AGR Petroleum's assets, except for AGR Energy AS, to a new holding company with the same ownership structure, according to a notice from bond trustee Norsk Tillitsmann.

AGR Petroleum is looking to bondholders to approve the transaction. It will also ask DNB Bank ASA as its facility agent to authorize the transaction under the company's senior facility agreement.

The bondholders' meeting will be held on Feb. 20 in Oslo.

To approve the proposal, at least half of the bonds must be represented at the meeting to have a quorum, and at least two-thirds of the bonds represented in person or by proxy at the meeting must vote in favor of the proposal.

The Norway-based company provides services and technology to the oil and gas industry.

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