The company, which has operations in the province of Río Negro, obtained the support of 77.73% of the holders of its negotiable obligations issued in 2022.
The British oil company President Petroleum, with operations in the province of Río Negro, informed the National Securities Commission (CNV) significant progress in the refinancing of its debt in the context of its current bankruptcy. The company reported that received the support of holders representing 77.73% of the outstanding face value of its Series III Guaranteed Negotiable Obligations, issued in December 2022. As detailed by the firm, this support is essential to implement the proposed modifications, which are subject to judicial authorization and a consent request process addressed to all holders.
Among the main proposed modifications, The company plans to extend the maturity of the Negotiable Obligations to December 31, 2026, replace the original quarterly amortization scheme with a schedule of 18 consecutive monthly installments that will begin to be paid on July 27, 2025and change the accrual of interest so that it is monthly for a period in arrears starting on January 27, 2025. Likewise, it is proposed to adjust the interest rate, which will go from 4% nominal annually to 6% until June 27, 2025 , and then at 8% nominal annually from July 27, 2025 until maturity.
These measures occur in a critical financial context for the company, which requested a preventive bankruptcy at the end of last year after facing serious difficulties in renegotiating its liabilities. President Petroleum’s debt then amounted to US$61.1 million, of which US$48 million corresponded to short-term maturities. During the first nine months of 2024, the company recorded a negative operating cash flow of $9 million, and its hydrocarbon production fell 20% compared to the previous year.reaching an average of 1,178 barrels of oil equivalent per day. Its main asset, the Lugar Flores area, represents 75% of the company’s total production.
Additionally, in March 2024, the firm returned more than 50% of the Sitio Flores-Estancia Vieja territory to the government of the Río Negro province, arguing the low profitability of the explored areas. In this context, The risk rating agency FIX lowered the company’s credit rating from B+ to CC, reflecting its fragile financial situation and doubts about its ability to meet the commitments made.
Source: Ambito
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