Coro Energy has received a letter from a group of its lenders granting a standstill over the company's Luxembourg-listed eurobonds due to mature on 12 April 2024.
Constructive discussions are also underway with those lenders, the company added.
James Parsons, Coro’s executive chairman, said: "I am pleased to announce the standstill arrangement with our Eurobond lenders as we continue to work towards a broader debt restructuring solution that structurally solves Coro's capital structure whilst providing funding for our renewables deployment and the business more generally.
"In the meantime, the company continues to make excellent progress across its portfolio, with long-awaited important milestones approaching at Duyung and continued material developments in our renewables across both the Philippines and Vietnam.
“I view the award of a second WESC in the Philippines and the completion of the first ten sites with MWG in Vietnam as critical steps towards the delivery of material cashflows from the renewables portfolio."
Coro added that the standstill will stay in place while discussions about the eurobonds continue and while certain inflexion points in the business materialise, including the outcome of the Duyung operator's farm-out process.
The outstanding balance of the eurobonds, including the rolled-up coupon, is US$29.3 million on 12 April 2024.
Conditions of the standstill include a requirement for lender consent on material capex spending during the period of the standstill.
Coro added it is working on a broader debt restructuring, which it intends to formally propose to all eurobond holders and shareholders in due course.