Circle Oil’s financial position remains “under significant pressure” and needs sustained improvement in payments from Egypt’s state-owned oil company to shore up its cash position.
Circle said that regular payments from Egypt, alongside extracting US dollars from its Moroccan operations, is required to both satisfy its obligations to its creditors and fund operations.
International Finance Corp have provided Circle Oil with another extension giving it until May 27 to repay the amounts due under the reserve-based lending facility. IFC has indicated its willingness to consider further waivers as may be required to continue the strategic review process which could lead to a sale of the business.