The agreement provides a waiver of default for any non-payment of interest previously due under this loan.
This amendment follows the April 2020 restructuring of the company’s existing £1m secured loan.
Should noteholders approve the restructuring at the upcoming noteholder meeting, Echo will have completed the restructuring of all its existing debt to defer all cash interest payments during 2020, SP Angel added.
In a statement, Echo said the agreement with Lombard Odier Asset Management will help it preserve its existing cash resources.
A quarterly interest payment was due for the three months ended March 31, 2020, and that will no longer be required, with no cash interest payments now payable before March 31, 2021.
Interest accruing in 2020 will be calculated on December 31, 2020, and will thereafter be added to the loan principle.
This agreement will be conditional upon the successful amendment of separate €20mln 8% secured notes which will go before a vote at a noteholder’s meeting on May 22.
Published at Thu, 14 May 2020 13:02:00 +0000-Echo Energy takes another important step towards loan restructuring, says broker