Coro Energy PLC has announced the receipt of a standstill letter from a group of Eurobond lenders, granting a standstill in respect of the Company's Luxembourg listed Eurobonds due to mature on 12 April 2024. The Company is in constructive discussions with the lenders and is working towards a broader debt restructuring solution. The outstanding balance of the Eurobonds, including rolled-up coupon, is US$29.3 million at 12 April 2024.
The Company has made significant progress across its portfolio, with important milestones approaching at Duyung and continued material developments in renewables across the Philippines and Vietnam. James Parsons, Executive Chairman of Coro, expressed his satisfaction with the standstill arrangement and the progress made, stating, "I view the award of a second WESC in the Philippines and the completion of the first ten sites with MWG in Vietnam as critical steps towards the delivery of material cashflows from the renewables portfolio."
The standstill provides a conditional arrangement on the repayment of the Company's current debt obligations on expiry, while constructive discussions with the Company continue and certain inflexion points in the business materialize. The Company is working on a broader debt restructuring and intends to formally propose it to all Eurobond holders and shareholders in due course.
In terms of specific projects, the Company has noted recent progress at the Duyung PSC, including ministerial approval of the gas price and volume allocation, completion of front end engineering design, and the agreement of binding key terms for the sale of domestic gas volumes. The Company is also focused on four development stage renewables projects in the Philippines and Vietnam, strategically looking to develop all projects to Ready to Build status and then selectively monetize and/or farm down the projects to fund construction.
The Company is awaiting the signature of a binding Gas Sales Agreement, finalization of documentation to access the West Natuna Transportation System for the transportation of gas to Singapore, and the results of the Operator's farm down process, in respect of which Coro has tag and drag along rights. The Company is looking to move to a final investment decision once these items are complete, potentially later this calendar year.
In conclusion, Coro Energy PLC is actively engaged in discussions with Eurobond lenders and making significant progress across its portfolio, with a focus on debt restructuring and the development of renewables projects in the Philippines and Vietnam.