Xcite Energy updates market on bond restructuring

AIM-listed Xcite Energy updated investors on the restructuring of its $135m senior secured bonds on Monday after its share price surged at the end of last week.

Xcite, which has been in talks with its bondholders since June about a possible restructuring, had set a deadline of 30 September for the repayment of outstanding bonds.

It said on Monday: “At the time of this maturity extension, the company highlighted that while those discussions had been constructive, no terms had yet been agreed, and that should agreement on the terms of a restructuring be reached, it was likely that this would involve a reduction in the balance of the Bonds in return for an equity stake in the company.”

Xcite said that while the terms of the restructuring have yet to be agreed, it now believes there will be “minimal residual equity stake attributed to the company’s existing shareholders following the restructuring”.

At 0850 BST, the shares were down 71% to 2.40p.