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Energy

IGas Energy shares up as it averts covenants breach

The group has realised US$6 million selling secured bonds

IGas Energy Plc (LON:IGAS) shares rose 11% as it got some breathing space through a bond sale, which mean it won't breach daily liquidity obligations this year.

As revealed last week, it expected a breach this week (week commencing October 31).

Now it has realised US$6 million selling secured bonds with a nominal value US$8 million at a 75% to par, which can be used for general purposes.

iGas now expects to comply with its daily liquidity covenant until March next year, when the next amortisation and interest payment is due in respect of the secured bonds.

The group added that it continues to talk to key stakeholders and strategic investors over options on a capital structure fitting for the current oil environment and allow it to capitalise on value adding opportunities.

Shares added 11.65% to 12p.

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