Sequa Petroleum shareholder, bondholders lend support to restructuring

By Caroline Salls

Pittsburgh, April 15 – Sequa Petroleum NV main shareholder Sapinda Holding BV and some affiliates holding a majority of the company’s $300 million of 5% convertible bonds due 2020 have committed to support Sequa’s bond restructuring, according to a news release.

Sapinda has executed a deed of irrevocable undertaking intended to implement a cancellation of the bonds and the conversion of the rights of the bondholders into rights to subscribe for new ordinary shares in the capital of the company.

According to the release, the deed of irrevocable undertaking includes conditions and stipulations that the company be allowed to create a further 748,113,198 ordinary shares, that the bonds be cancelled on the settlement date, that each bondholder be entitled on the settlement date to receive 3.660045 ordinary shares for each $1 in principal amount of bonds and that any existing event of default or potential event of default arising under the trust deed and the bonds is irrevocably waived.

The company said it currently plans to ask its supervisory board to include a vote on the issuance of the shares on the agenda of the upcoming 2019 general meeting of shareholders. Sapinda will seek bondholder approval of a related written resolution after the general shareholder meeting.

The restructuring of the company’s debt also includes a settlement that will eliminate a $4.5 million liability in the company accounts, the release said.

Sequa said the bond restructuring is designed to enable it to progress current production and development assets acquisition targets.

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

© 2015 Prospect News.
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