Echo Energy, the Latin American focused upstream oil and gas company, provides an update on the continued restructuring of the Company's existing debt to defer all cash interest payments during 2020 with a view to enabling the Company to preserve existing cash resources.
The Company is pleased to announce entry of an amendment (the "Amendment") to the Company's EUR 5.0m 8.0% secured convertible debt facility (the " Loan") entered into with Lombard Odier Asset Management (Europe) Limited ("Lombard Odier").
Under the Amendment it has been agreed that the Company has not and will not be required to make the previously required 31 March 2020 quarterly interest payment under the Loan, removing the previously announced event of default, and that no further payments will be required of the Company under the Loan prior to 31 March 2021.
Instead, 2020 interest under the Loan shall accrue and be calculated on the last business day of December 2020 so as to form part of the principal amount of the Loan. For the period from and including the last business day of December 2020 and until maturity of the Loan, interest shall be calculated and payable on a quarterly basis. As part of the Amendment, the approval of the restructuring of the Company's Luxembourg listed EUR 20.0m 8.0% secured notes (the "Notes"), which will be put to the noteholders at an adjourned noteholder meeting, to be held at 10:00 a.m. on 22 May 2020, is required within 90 days of the date of the Amendment as a condition subsequent.
The Amendment is a further important step in the successful restructuring of the Company's debts and provides a waiver of default for any non-payment of interest previously due under the Loan.
Entry of the Amendment follows the successful April 2020 restructuring of the Company's existing £1 million secured loan and, should noteholders approve the restructuring of the Notes at the forthcoming adjourned noteholder meeting, the Company will have completed the restructuring of all of the Company's existing debt to defer all cash interest payments during 2020.
