Gulf Keystone Petroleum Limited (LON:GKP) has completed another step in the regulatory process required for the company to restructure their balance sheet.
A short stock market statement made on the 30th of September revealed that on the heels Thursday’s sanction meeting, the company received approval for the restructuring scheme, which the company indicated signified that their progress was as expected and everything was moving according to schedule.
Recently, the majority of the lenders Gulf Keystone works with were in support of the restructuring proposal the oil firm put forward.
Of the guaranteed noteholders, 90% voted in favor of the restructuring, while of the convertible bondholders, 84% granted approval for the scheme. The restructuring will lead to US$500 million in debt being exchanged for new shares in Gulf Keystone, as well as approximately US$125 million in new funds raised.
The process is on schedule and expected to be completed in October. The result, according to CEO Jon Ferrier, is that Gulf Keystone Petroleum will be in the best position it has been in for many years. The company saw their shares decline to 2.18 pence, indicating a 1% drop.