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Global Energy Dev. (NAUT)

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Tuesday 01 March, 2016

Global Energy Dev.

Amendment of Note Receivable

RNS Number : 5458Q
Global Energy Development PLC
01 March 2016
 

 

Immediate Release

1 March 2016

 

 

GLOBAL ENERGY DEVELOPMENT PLC

(the "Company" or "Global")

 

AMENDMENT OF NOTE RECEIVABLE

 

 

Global Energy Development PLC (AIM: GED), the Latin America focused petroleum exploration, development and production company with operations in Colombia, announces that the Company and HKN, Inc. ("HKN") (collectively as "Co-Lenders") amended the secured bridge financing note agreement ("Amended Note Receivable") with Everest Hill Energy Group Ltd. ("Everest") on 29 February 2016.  The original loan terms were announced on 16 September 2015.

 

Under the Amended Note Receivable, the Company has loaned an additional $2 million to Everest and the Co-Lenders have extended the maturity date by six months to 15 September 2016 for the total loan of $12 million.  In addition, under the terms of the Amended Note Receivable, the Co-Lenders have been granted a right of first refusal to purchase certain offshore oil service vessels owned by Everest and its affiliates.  The Amended Note Receivable continues to be subject to an interest charge of 12 per cent. per annum, payable monthly in arrears and Everest has also paid to Global a 2 per cent transaction fee of $40,000. 

 

The Amended Note Receivable continues to be secured by all of Everest's and its subsidiaries' holdings of Global and HKN securities ("Collateral").  As at 29 February 2016, being the closing date of the amendment, the Company considers the Collateral value to be adequate in support of the principal amount of the Amended Note Receivable.  Global is serving as the collateral agent for the Co-Lenders. 

 

Everest is an affiliated company of the Quasha family trusts which also have an interest in Lyford Investments, Inc., ("Lyford") an existing shareholder in Global.  HKN, Lyford and parties acting in concert with them are interested in 22,553,406 Global shares, representing approximately 62.45 per cent of the issued share capital of the Company.  By virtue of these holdings, the amendments to the terms of the loan constitute a related party transaction in accordance with AIM Rule 13.  With the exception of Mikel Faulkner, who is a director of HKN, the Company's Directors consider, having consulted with Northland Capital Partners Limited, the Company's Nominated Adviser, that the terms of the Amended Note Receivable are fair and reasonable insofar as the Company's shareholders are concerned. 

 

For further information please contact

Global Energy Development PLC

Anna Williams, Finance Director

   +001 817 310 0240

[email protected]

 

 

 

 

Northland Capital Partners Limited

 

  Matthew Johnson

   +44 (0)20 7382 1100

  David Hignell


This information is provided by RNS
The company news service from the London Stock Exchange
 
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