LONDON (Reuters) - Creditors of North Sea-focused Premier Oil (L:PMO) have extended a waiver for the group's debt covenant test until Nov. 5, giving it breathing space to avoid a debt crunch, the company said on Thursday.
Premier needs to convince at least 75% of its creditors that the best solution is for the company to extend debt maturities to 2025 and try to raise $530 million, part of which would be spent on buying assets from BP (L:BP) to boost production.
In August, Premier said it had 45% of creditors on board. It did not provide an updated tally on Thursday.
Meanwhile, Premier is also in talks with private equity-backed rival Chrysaor on an alternative deal.
"Premier's creditors have approved an extension to the previously announced Stable Platform Agreement with the group's financial covenants waived through to 5 November 2020," Premier said after its previous waiver ran out on Wednesday.
"Discussions continue relating to the proposed refinancing and possible alternative transactions."