Shares of Latin America focused oil and gas firm Echo Energy (LON: ECHO) have spiked in the last couple of hours after the company said it has now successfully completed the restructuring of its debt obligations.
The company held a meeting on Tuesday with the holders of its Luxembourg listed €20 million 8.0% secured notes to consider proposals for restructuring, which were approved by an 84% majority.
As part of the restructuring, the notes' maturity will be extended by three years to the 15th of May 2025, with all cash interest payments on the notes rolled to the maturity date.
It also means that the previously announced conditional restructuring of its €5 million 8.0% secured convertible debt facility will now become effective.
The Debt Facility restructuring will see its final maturity extended to April 2025, with no further cash interest payments required before final maturity.
“The new arrangements result in no cash payments to Noteholders until maturity in 2025. This enables the Board to focus on rapidly delivering on its strategy to improve shareholder returns,” said Martin Hull, Echo's CEO.
“Commodity price strength, including the very material increases in gas price recently announced, combined with the more than doubling of oil production following the ongoing infrastructure upgrades, provide a markedly improved and positive outlook for shareholders,” added Hull.
Echo Energy’s share price is currently trading 16% higher at 0.88p per share.
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