Sand Hill Petroleum seeks approval to further defer interest payment on 9% secured bonds due 2022

By Rebecca Melvin

Concord, N.H., Nov. 30 – Sand Hill Petroleum BV has issued a notice of bondholders’ resolution regarding its €70 million 9% senior secured bonds due 2022 (ISIN: 0010820616) seeking to defer further the interest payment originally due Oct. 13 to Jan. 31, 2022, according to company announcement.

Sand Hill is also seeking to postpone testing the leverage ratio to March 31, 2022 from Dec. 31, according to the Nov. 29 notice of resolution.

Following postponement of the Oct. 13 interest payment, the payment had been due on Nov. 30 and all interest accrued in the previous interest period beginning on April 13 and ending Oct. 13 falls due with the claim being held by the bondholders through a separate ISIN, NO0011129488.

The company is engaged in discussions with an ad hoc committee of bondholders, representing about 77% of the bonds, regarding the potential sale of the company's shares, subsidiaries or assets. In light of those discussions, the ad hoc committee had proposed that the company seek bondholders' consent to postpone the payment of interest accrued in the previous interest period and a waiver from the leverage ratio.

Sand Hill said that funds for the interest payment are held in its bank account and that it is able and intends to make the interest payment in full.

If bondholders consent to the proposal, there will be no default interest accruing or any interest accruing on the deferred interest payment in the period between Nov. 30 and Jan. 31.

Acceptance of the proposal will not affect the current interest period beginning Oct. 13 and ending April 13.

The issuer has approached the bond trustee to request written resolution, and holders’ votes by post, courier or e-mail must be received no later than 7 a.m. ET on Dec. 13.

Based in Amsterdam, the oil and gas exploration and production services company has subsidiaries in Hungary and Romania.

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