Gulf keystone has staved off a mandatory repurchase of its US$250m 13% 2017 bonds after bondholders agreed to drop a covenant from the notes' documentation. Bondholders representing 89% of the principal amount of the notes outstanding participated in the consent solicitation, with 99% of votes cast in favour of dropping the book equity ratio put option from the bonds, the firm said on Wednesday. The book equity ratio covenant would have forced Gulf Keystone to buy back the bonds at 101 if the ratio was under 0.4 for 60 consecutive days.
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