Kazakhstan’s Nostrum Oil seeks forbearance for 2022, 2025 notes

By Marisa Wong

Los Angeles, Aug. 26 – Nostrum Oil & Gas plc is seeking to enter into a forbearance agreement with some holders of its notes in connection with missed interest payments, according to a company press release.

An event of default has occurred under the 8% senior notes due 2022 issued by Nostrum Oil & Gas Finance BV due to non-payment of the interest due on July 25 and the expiration of the 30-day grace period.

Nostrum also did not pay interest on its 7% senior notes due 2025 when due. The 30-day grace period for these notes is still ongoing, but the issuer does not expect to make that coupon payment by the end of the grace period.

On Wednesday Nostrum said it is in advanced discussions with the financial and legal advisers to a steering committee of noteholders, namely PJT Partners (UK) Ltd. and Akin Gump Strauss Hauer & Feld, respectively.

If and once Nostrum enters into that forbearance agreement with the select noteholders, it will make an announcement inviting all other holders of its notes to join that agreement within a specified period of time.

Nostrum is an oil and gas company with operations in Kazakhstan and offices in London and Amsterdam.

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