IOG expects to breach bond covenants as gas prices fall

Chicago, June 7 – IOG plc said that it expects it will breach one or more covenants under the terms of its €100 million senior secured bond at the next covenant test date of June 30 due to declining gas prices, according to a corporate update.

The company has started to work with an ad hoc group of bondholders representing around 40% of the bonds to secure preemptive waivers of the potential covenant breaches.

The company is also working with the bondholders on an agreement regarding measures that will enable the company to withstand short-term consequences of recent gas price developments.

Further, the company is discussing the most effective means of addressing the maturity of the bond due in September 2024.

IOG is a United Kingdom developer and producer of indigenous offshore gas. The company was previously known as Independent Oil & Gas plc.

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