Premier Oil plc said it had received support from each class of its creditors for the offshore company’s proposed merger with Chrysaor Holdings Ltd.
The creditors have entered into a binding support letter for the deal which will also see a reorganisation of Premier’s existing financial arrangements.
In October 2020, Premier announced the proposal following an agreement with US private equity firm Harbour which owns Chrysaor.
Premier also said its approximate US$2.7bn total gross debt and certain hedging liabilities would be repaid and cancelled on completion.(bit.ly/34SP143)
At the time, more than 43% by value of existing creditors had entered a support letter, which would terminate if the requisite thresholds of existing creditors, some 75%, had not entered into it by 3 November 2020.
A statement from chief executive Tony Durrant read: “Under the support letter the creditors have, among other things, irrevocably undertaken to vote in favour of the court-approved restructuring plans, and have agreed to waive Premier’s financial covenants until completion of the transaction.
“As such, the merger agreement between Premier, Harbour, funds managed by EIG and Chrysaor has been released from escrow.
“Premier will launch the restructuring plan processes through the issuance of a practice statement letter, immediately after the prospectus for the transaction is published, which is currently anticipated by the end of 2020.
“The transaction is expected to complete by the end of Q1 2021.”
Premier Oil’s current interests lie in the North Sea, Indonesia, Vietnam, Falkland Islands, Alaska and Brazil.