Echo Energy CEO hails ‘landmark’ moment
The Echo Energy (LON:ECHO) share price spiked on Tuesday as the company confirmed it had completed the restructuring of its debt obligations.
The oil and gas firm announced that at a meeting between holders of its Luxembourg-listed €20 million 8.0% secured notes, an 84% majority approved proposals for restructuring.
At afternoon trading the Echo Energy share price is up by 30.3% to 0.99p per share following the trading update by the AIM-listed company.
The note’s maturity will be extended by three years to 15 May 2025 as part of the restructuring, with all cash interest payments on the notes rolled to the maturity date.
The previously announced conditional restructuring of its €5 million 8.0% secured convertible debt facility will now become effective.
No further cash interest payments will be required before final maturity, as the Debt Facility restructuring will see its final maturity extended to April 2025.
Martin Hull, Echo’s Chief Executive Officer, commented on the restructuring as well as the implications for shareholder returns.
“I am delighted that Echo has now successfully completed the restructuring of its debt obligations. 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,” Hull said.
“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.”
“This is a landmark moment for Echo and I am confident that we can now drive forward and reward shareholders in the future.”