October 1, 2020
A Premier Oil FPSO in the North Sea – File Photo: Premier Oil
Creditors of North Sea-focused Premier Oil have extended a waiver for the group’s debt covenant test until Nov. 5, giving it breathing space to avoid a debt crunch, the company said on Thursday.
Premier needs to convince at least 75% of its creditors that the best solution is for the company to extend debt maturities to 2025 and try to raise $530 million, part of which would be spent on buying assets from BP to boost production.
In August, Premier said it had 45% of creditors on board. It did not provide an updated tally on Thursday.
Meanwhile, Premier is also in talks with private equity-backed rival Chrysaor on an alternative deal.
“Premier’s creditors have approved an extension to the previously announced Stable Platform Agreement with the group’s financial covenants waived through to 5 November 2020,” Premier said after its previous waiver ran out on Wednesday.
“Discussions continue relating to the proposed refinancing and possible alternative transactions.”
(Reporting by Shadia Nasralla Editing by David Goodman)