Chrysaor Moves Nearer Premier Takeover

A UK court has granted Premier Oil's request to reorganise its debt and cross currency swaps in readiness for the takeover by Chrysaor, the London-listed producer said January 25. Premier will convene creditor meetings February 22, with the restructuring plans sanction hearing expected to take place March 19.

Premier has received the requisite level of creditor support for the transaction from each class of its creditors – including the class of senior creditors – with those creditors entering into a binding support letter. Under the support letter the creditors have, among other things, irrevocably undertaken to vote in favour of the restructuring plans at the creditor meetings.

On completion, creditors and retail bondholders will be entitled to receive their proportionate share of the following in exchange for the cancellation of their debt: an upfront cash payment of $1.23bn and new ordinary shares in the combined group; or, if they so elect, a share of a further cash payment capped at about $175mn. 

Premier announced it had appointed a CFO for the combined entity, Harbour Energy, earlier that day.