Sequa Petroleum again skips $5.11 million interest due on 5% bonds

By Susanna Moon

Chicago, Nov. 14 – Sequa Petroleum NV notified holders that another potential default had occurred under its $300 million 5% convertible bonds due 2020.

Sequa failed to pay $5.11 million of interest due for the period ended Oct. 31 and the default needed to be cured within 14 calendar days from that date, according to a company notice.

“The company continues to progress high quality acquisition targets of production and development assets that are expected to be value-accretive to its bondholders and shareholders in case the company’s bond debt is restructured,” the notice said.

“The company is closely monitoring the situation and exploring potential solutions,” the release added.

The company said on May 15 that it had skipped paying the $5.11 million of interest due for the period ended April 30, with $204.4 million of the bonds outstanding at the time.

The company said at the time that its expected bond restructuring would address the defaults as well as overdue coupons.

Sequa is an oil and gas reserves developer based in London and is a subsidiary of Sapinda Holdings BV, an investment holding company based in the Netherlands.

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