Echo Energy PLC (LON:ECHO) has updated on its debt restructuring negotiations, noting that debt holders have indicated support - albeit with interest payments for March not paid.
It said amendments to the terms have been agreed for Echo’s £1mln loan facility, which carries 12% interest. Interest will roll up into the loan's principle over the coming months, and as such quarterly cash interest payments are suspended until after March 2021.
The repayment schedule has also been amended - £100,000 is due in March 2021, followed by three quarterly payments of £50,000 and then the £750,000 balance would be paid in March 2022.
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Negotiations are ongoing with holders of Echo’s €5mln secured convertible notes, carrying 8% interest. The noteholders have indicated their continued support of the company, and said they will waive their default rights in the wake of March’s non-payment.
Elsewhere, the company said it continues in its attempt to amend its Luxembourg-listed €20mln secured notes, which also carry 8% interest, which was also due an interest payment on March 31.
It added that it is working to convene a noteholders meeting so that there can be a vote to enable a proposed restructuring.
Echo Energy pointed out: “The company confirms that it has not met the 31 March 2020 (loan) notes interest payment and as a result, the company will be in default on the (loan) notes until such time as (loan) note holder approval is received for a restructuring of (loan) note interest payments.”