Gulf Keystone reaches standstill agreement with some noteholders

New York, April 29 – Gulf Keystone Petroleum Ltd. said that it reached a standstill agreement with an ad hoc committee of holders of its $250 million of 13% guaranteed notes due 2017 and $325 million of 6.25% convertible bonds due 2017.

Under the standstill agreement, the holders have agreed not to instruct the trustees for the debt to declare amounts outstanding immediately due, according to a notice from the company.

Gulf Keystone said that the committee represents “a significant proportion” of the holders of both series of securities but less than 75% of the principal amount.

According to the terms of the indentures, holders of at least 25% may request that the trustee declare the principal amount immediately payable.

Gulf Keystone did not make the coupon payments due on April 18 on the notes and bonds. The grace period for the convertibles expires on May 2 and for the 13% notes on May 3.

The company said that it does not plan to pay the interest within the grace period.

It added that the standstill agreement is intended to provide it with additional time to continue discussions after the expiration of the grace periods.

Gulf Keystone is an oil producer incorporated in Bermuda and with offices in London and Erbil in the Kurdistan region of Iraq.

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