VANCOUVER, BC, Jan. 12, 2021 /CNW/ - ShaMaran Petroleum
Corp. ("ShaMaran" or the "Company") (TSXV: SNM) (Nasdaq
First North Growth Market: SNM) is pleased to announce the issuance
today of a Summons for Written Resolution from Nordic Trust AS as
Bond Trustee to all Bondholders of the Company's 12% senior
unsecured bonds due 2023 (ISIN: NO 001082645.6) (the "Bonds")
setting out the details of the Proposal (set forth below) with a
voting period ending on January 26,
2021. View PDF version.
DISCUSSIONS WITH BONDHOLDERS
The Company has been in discussions with the informal Ad Hoc
Committee representing approximately more than 50% of the
Bondholders (the "AHC") to amend the cash sweep mechanism agreed in
the July 2020 amended and restated
bond terms to better utilize its "free cash" to buy back its Bonds
in the market and today is pleased to report that an agreement has
been reached for the Proposal (set forth below) between the Company
and the AHC. Implementation of the Proposal, which is subject to
approval by the holders of 66 2/3% of the Bonds, will enable the
Company to further reduce its debt obligations on commercially
attractive terms as and when they exist in the market.
Dr. Adel Chaouch, President and
Chief Executive Officer of ShaMaran commented, "We are pleased that
2021 has begun with another positive result for ShaMaran with this
constructive engagement with the AHC on behalf of the Bondholders
resulting in the Proposal that provides ShaMaran future flexibility
to strengthen the financial position of the Company."
Key terms of the Proposal to the Bondholders that was agreed
between the Company and the AHC are that "free cash" in excess of
USD 15 million can be used by the
Company to buy back its Bonds in the market to satisfy the cash
sweep redemption requirement that was agreed in last Summer's
amendment and restatement of the Bond Terms. All Bonds so
re-purchased will be retired by the Company. Should the Company not
be able to buy sufficient Bonds in the market at commercially
attractive rates then any remaining amount of "free cash" shall be
used to redeem that principal amount of Bonds at par on a pro
rata basis.
OTHER
This information is information that ShaMaran Petroleum Corp. is obliged to make public pursuant
to the EU Market Abuse Regulation. The information was submitted
for publication through the agency of the contact persons set out
below, at 5:30 p.m. Eastern Time on
January 12, 2021. Pareto Securities
AB is the Company's Certified Advisor on Nasdaq First North Growth
Market, +46 84 02 5000, certifiedadviser.se@paretosec.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
ABOUT SHAMARAN
ShaMaran Petroleum Corp. is a Kurdistan focused oil development and
exploration company which holds a 27.6% working interest in the
Atrush Block through its wholly-owned subsidiary, General
Exploration Partners, Inc.
ShaMaran is a Canadian oil and gas company listed on the TSX
Venture Exchange and the Nasdaq First North Growth Market
(Stockholm) under the symbol
"SNM".
SOURCE ShaMaran Petroleum Corp.