ShaMaran makes proposal after agreement with group of 12% bondholders

By Wendy Van Sickle

Columbus, Ohio, Jan. 12 – ShaMaran Petroleum Corp. said it issued on Tuesday a summons for a written resolution from trustee Nordic Trust AS to all holders of the company’s $240 million 12% senior bonds due 2023 (ISIN: NO0010826456).

The voting period will end on Jan. 26, according to a news release.

After discussions with an ad hoc committee representing more than half of the bondholders, the company said an agreement has been reached for a proposal.

Implementation of the proposal requires approval from holders of at least two-thirds of the bonds.

Key terms of the proposal to are that “free cash” in excess of $15 million can be used by the company to buy back its bonds in the market to satisfy the cash sweep redemption requirement that was agreed in an amendment in the summer of 2020. All such repurchased bonds will be retired.

If the company is unable to buy sufficient bonds in the market at commercially attractive rates, then any remaining amount of “free cash” will be used to redeem that principal amount of bonds at par on a pro rata basis.

Vancouver, B.C.-based ShaMaran is a Kurdistan-focused production, development and exploration company.

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