Gulf Keystone has reached an agreement with its bondholders to make use of good grace for April coupon payments.
The company, whose main assets are located in the Kurdistan Region of Iraq, has been struggling with low oil prices as well as slow payments from the government for its oil.
Gulf Keystone said it would enter into a standstill agreement which will run until May 20th.
A significant amount of bondholders are said to have signed up to the agreement, but the represent less than 75% of the principal amount.