Echo Energy lacks quorum, adjourns bondholder meeting to May 22

By Sarah Lizee

Olympia, Wash., May 1 – Echo Energy plc adjourned a meeting for holders of its €20 million 8% secured notes to 10 a.m. ET on May 22 from May 1 due to lack of quorum, according to a notice.

The company said that voting instructions representing €2.8 million of the notes were lodged by holders to date which were unanimously in favor of the proposals.

The adjourned noteholder meeting will require a quorum of 25% of the aggregate principal amount of the outstanding notes, being considerably lower than the 75% of the aggregate principal amount of the outstanding notes that had been required for the original noteholder meeting.

As previously reported, the company is seeking consents to restructure the notes and waive the defaults that have occurred from missing the quarterly interest payment on March 31, according to a press release.

The company hopes to amend the notes so that all interest payments due in 2020 would be payable instead at maturity in May 2022. The company would still make quarterly payments in 2021 and 2022.

Additionally, the company will secure the notes with a share charge over 100% of the shares in Echo Energy Argentina Holdings Ltd. This security would be shared pari passu between the noteholders and Lombard Odier Asset Management (Europe) Ltd., which is the lender under the company’s €5 million 8% secured convertible debt facility.

Echo Energy is a London-based oil and natural gas holding company focused on South and Central America.

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