Gulf Keystone Deleverages, Eyes Output Boost

Gulf Keystone Petroleum (GKP) has endured a year to forget so far, burdened by crippling debt levels and low oil prices. But it sees light at the end of the tunnel, having announced a planned debt-for-equity agreement with bond and note holders on 14 July.

This would see GKP’s debt – set to mature in 2017 – reduced from more than $600mn to just $100mn, in exchange for equity. Existing shareholder’s equity would fall to 5% as a result, although they will be permitted to purchase $25mn worth of equity, bringing the total to 14.5%. This is at a price of $0.0109 per share (around £0.0082), well below the £0.047 it closed at on 13 July. (CONTINUED - 245 WORDS)