Gulf Keystone Petroleum Ltd.’s bondholders have secured control of the oil producer after the English High Court approved a debt-restructuring agreement proposed by the Bermuda-incorporated company.
The decision gives creditors 85.5 percent of the equity in the company, according to the court ruling by Mr. Justice Newey. The agreement won near-unanimous support from bondholders.
Gulf Keystone, which operates in the Kurdish region of Iraq, missed bond payments in April 2016 as it struggled with the collapse in crude prices to below $50 a barrel.
The company has also been hindered by erratic payments from the Kurdistan regional government amid the war against the so-called Islamic State.
Gulf Keystone in July rebuffed a $300 million takeover offer from DNO ASA, a Norwegian oil company also operating in Kurdistan.
For more information, see: http://www.gulfkeystone.com/restructuring
By way of background, Gulf Keystone Petroleum Ltd. is an independent oil and gas exploration and production company with operations in the Kurdistan Region of Iraq. The Company was incorporated in Bermuda in 2001 and was admitted to trading on the Alternative Investment Market of the London Stock Exchange plc on 8 September 2004. On 25 March 2014 the Company made its transition from AIM and was admitted, with a standard listing, to the Official List of the United Kingdom Listing Authority and to trading on the LSE’s main market for listed securities.