Oil company Xcite Energy has confirmed Nordic Trustee has called a bondholders’ meeting to be held later this month.
Nordic acts as trustee for the holders of the $135 million secured bonds issued by Xcite, which has been in discussions with its principal bondholders regarding a potential restructuring of the bonds.
Xcite said negotiations have been “constructive”, however no terms have yet been agreed. Any agreement is likely to involve a reduction to the balance of the bonds in return for an equity stake in the company.
Xcite has requested a short-term extension to the bond maturity date to September 30 from June 30.
The company is also requesting amendments to the bond agreement to reduce the notice period for a bondholders’ meeting to five business days from ten business days, and to allow a written resolution procedure to be used instead of a bondholders’ meeting to simplify and speed up the voting process for bondholders when restructuring terms are agreed.
Bondholders holding in excess of 93% of the outstanding bonds have indicated their support for the proposed amendments.
