In arrears: Zhaikmunai
Zhaikmunai on hunt for cash
Kazakh oil producer Zhaikmunai said today it was in talks with lenders about possible waivers on its debt covenants after "various events of default" led to a $100 million credit line being cut off.
The company, which did not specify the nature of the defaults, said it aims to refinance debt via a $300 million placement of global depository receipts, which would also help fund spending plans.
"The proceeds of the placing will be used to supplement the group's existing credit facilities and fund in part the capital expenditure programme for the Chinarevskoye field, in particular the completion of the gas treatment unit," it said in a statement.
The company produced 7615 barrels per day in the first quarter of this year and plans to raise output to 48,000 barrels per day in 2010 once the treatment unit is on stream.
Zhaikmunai said the final $100 million tranche of a $550 million credit line led by BNP Paribas was not syndicated and there were "various events of default outstanding under the facility".
"Zhaikmunai has continued negotiations with its existing lenders under the facility regarding potential waivers of the outstanding events of default," it said.
Negotiations with other finance providers are also ongoing and Zhaikmunai "remains confident of reaching a successful conclusion to this exercise in July."
The GDR placing is subject to regulatory approvals, including a confirmation from the government of Kazakhstan, which has a pre-emptive right to buy into local oil companies.