• Monday, June 24, 2024
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LEKOIL names Savannah Energy as restructuring partners

LEKOIL names Savannah Energy as restructuring partners

LEKOIL, the oil and gas exploration and production company with a focus on Nigeria and West Africa is pleased to announce Savannah Energy Investments Limited (“Savannah Investments” or the “Investor”) as its restructuring partners.

The company said it has entered into a convertible facility agreement (the “CFA”) and option agreement (the “Option Agreement”) with the Company in order to support the Company’s restructuring.

Savannah Investments is a wholly-owned investment vehicle of Savannah Energy Plc (“Savannah”), the British independent energy company focused on the delivery of Projects that Matter in Africa.

According to the release by the firm, the Company has entered into the CFA with Savannah Investments whereby Savannah Investments will support LEKOIL’s proposed restructuring by providing a £0.9 million loan to LEKOIL.

In addition, The Company has also signed an Option Agreement with Savannah Investments granting it, subject to the approval of the Company’s shareholders at an extraordinary general meeting to be called in March 2022.

“An option to be assigned the intercompany debt owed to the Company by Mayfair Assets & Trusts Limited, its associated security related to OPL 310, and all rights and benefits of the Company with respect to the same,” the statement reads.

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“We are extremely pleased to announce that, following extensive consultation with LEKOIL’s existing major institutional shareholders, we have entered into the CFA and the Option Agreement with Savannah Investments,” Tony Hawkins, Interim Executive Chairman of LEKOIL, said.

He added that the CFA will provide LEKOIL with much-needed working capital and value realisation assistance from a successful, well-respected, and well-financed African-focused investor with substantial Nigerian corporate restructuring and turnaround experience.

Meanwhile, Oge Peters, Director, Savannah Energy Investments Limited, said that Savannah is pleased to work with LEKOIL.

“We are proud to have been asked by LEKOIL to work with them as they seek to restructure their Group over the course of the coming months.

“Savannah is a supportive long-term investor with significant corporate restructuring and turnaround experience,” she said. Adding that “While LEKOIL’s recent history has been disappointing for its stakeholders, we hope that LEKOIL can be restructured to enable the potential of the Company’s asset base to be realised.”