Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

IGas Energy confirms it will cut out US$112mln of debt though its financial restructuring

IGas is bringing in up to US$60mln of new capital and exchanging around US$112mln of debt for new shares.
IGAS ENERGY TANKER TRUCK
The new share placing funding is backed by private equity investor Kerogen Capital

IGas Energy Plc (LON:IGAS) has revealed the extent of its proposed financial restructuring, with the debt-for-equity element expected to substantially reduce its debt.

The UK shale gas group told investors that it will reduce debt from US$122mln to a maximum of US$10mln by issuing new shares to its lenders.

At the same time, it is raising US$55mln of new equity in a share placing anchored by private equity group and cornerstone investor Kerogen Capital.

Existing shareholders will also be given the opportunity to buy new shares, via a US$5mln open offer.

All new shares will be issued at a price of 4.5p each (Thursday’s closing price was 5.25p).

IGas chief executive Stephen Bowler said: “We are pleased to announce the final terms of a restructuring package which, together with our new strategic investor, Kerogen, and the support of bondholders and shareholders would result in a strong balance sheet that, in this oil price environment, would enable us to focus on delivering the significant potential of our production and development assets.”

Jamie_55a91591db06b.jpg
Why Invest In IGas Energy Plc? Read More Here

Register here to be notified of future IGAS Company articles
View full IGAS profile

IGas Energy Plc Timeline

Big Picture
March 09 2017

Related Articles

wind turbine in the sea
November 04 2016
Shares are up 13% this year, despite the negative effect of Brexit
picture of Chinese city
February 02 2017
Green Dragon Gas is China-focused and specialises in extracting gas locked into the huge coal beds the run underneath the country.
UtilityMeter.jpg
November 25 2016
During its last fiscal year, OPG generated a record 3.2 billion units of electricity.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use