Gulf Keystone extends standstill agreement with ad hoc committee

By Sheri Kasprzak

New York, June 14 – Gulf Keystone Petroleum Ltd. announced Tuesday that its standstill agreement with its ad hoc committee of note and bond holders was extended, according to a notice from the company.

The agreement will now expire on July 1. It previously was set to end on June 13.

The standstill agreement is related to its $250 million of 13% guaranteed notes due in 2017 and $325 million of 6.25% convertible bonds due 2017.

The signatories to the extension are the same as the ones for the original agreement.

“Whilst the standstill agreement remains in effect, the company does not intend to make the April 2016 coupon payments,” said the company’s statement.

“The continuing failure to make those payments constitutes an event of default under the bonds and notes, respectively. At a time when an event of default subsists the holders of not less than one-quarter of the principal amount of the notes or the bonds, as the case may be, then outstanding may request the relevant trustee to declare the principal amount of the notes and the bonds, as the case may be, immediately due and payable.”

Based in Hamilton, Bermuda, Gulf Keystone is an oil and natural gas production company.

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