North Sea-focused Premier Oil has taken a step forward on its long drawn-out refinancing programme as it today announced convertible bondholders came to an agreement with the firm's amended terms.
The new terms to its $245m (£199m) convertible bonds were approved by an ad hoc committee representing 47 per cent of its convertible bondholders. Premier said it will look to implement the terms through an extraordinary resolution after 50 per cent of holders have agreed.
Shares in the company were down 7.41 per cent at 64.35p in late afternoon trading.
The embattled oil firm has been in talks with lenders over its $2.8bn debt pile for nearly a year, and in January it said talks were at an "advanced stage".
Pyrrho Investments, one of the three largest convertible bondholders in Premier Oil, said it was "deeply dissatisfied" with the offered terms and the consultation process to date. Pyrrho also noted a lack of transparency and poor communication in the restructuring process.
Pyrrho said: "We note the announcement made by Premier Oil on 1 March 2017 stating they have 47 per cent of the convertible bond 'locked up' and in favour of the current proposed terms. Pyrrho draws bondholders attention to the fact that the company is a long way from the 75 per cent minimum vote needed to pass on this resolution at the extraordinary general meeting of bondholders."
Premier will report on the status of its formal credit approval and "lock up" of private lenders with its annual results on 9 March.
Before oil prices tumbled in 2014, Premier's shares were trading at more than 300p. Stock fell to less than 20p per share in January 2016.