Further to its press releases of 14 November 2016, 9 February 2017 and 17 March 2017 Sequa Petroleum N.V. ("Company") notes that a further potential default has occurred under the Bonds of failure to pay $5.11M interest under article 10 (a) of the Terms and Conditions of the Bonds and the failure to remedy has continued for 14 calendar days from 1 May.
The Company expects this new potential default and the earlier potential defaults to be resolved with its main shareholder's support for restructuring the Company's debt. Accordingly, the Company has received confirmation from Sapinda that the required majority of Bonds is held by Sapinda and affiliates.
While amounts received to date have not matched the timing or quantum requested, the Company currently expects to be able to draw sufficient funds from its convertible loan facilities with Sapinda Invest Sarl and Sapinda Asia Limited to enable it to continue to trade and complete the liquidation of its subsidiary Tellus Petroleum AS, following cessation of its E&P activity in Norway.
The net funds expected from the repatriation of liquidated assets together with debt restructuring and possibly new equity and/or debt funds will enable the Company to progress selected high quality appropriately sized acquisition targets of production and development assets elsewhere that are value-accretive and provide cash flow.
Contacts:
Jacob Broekhuijsen, Chief Executive Officer
+44(0)203-728-4450 or info@sequa-petroleum.com
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Sequa Petroleum NV via Globenewswire
Source: Thomson Reuters ONE
(May 15, 2017 - 2:00 AM EDT)
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