Gulf Keystone Petroleum (GKP) has confirmed that, further to the company’s announcement of 1 June 2016, that the Standstill Agreement with the Ad Hoc Committee of holders of Notes and Bonds has been extended until 1 July 2016.
The signatories to the extension of the Standstill Agreement are the same as to the prior standstill. They hold a significant proportion (but less than 75% by principal amount) of each of the Company’s Notes and Bonds.
Whilst the Standstill Agreement remains in effect, the Company does not intend to make the April 2016 Coupon Payments.
The continuing failure to make those payments constitutes an Event of Default under the Bonds and Notes, respectively.
At a time when an Event of Default subsists the holders of not less than one-quarter of the principal amount of the Notes or the Bonds, as the case may be, then outstanding may request the relevant Trustee to declare the principal amount of the Notes or the Bonds, as the case may be, immediately due and payable.
The signatories to the extension to the Standstill Agreement have agreed not to vote in favour of any resolution of the Noteholders or Bondholders to instruct the relevant Trustee to take such a step.
A further announcement will be made in due course.