London – Paul Hastings LLP, a leading global law firm, announced today that it has advised Gulf Keystone on its recently completed financial restructuring.
The Scheme of Arrangement in connection with the balance sheet restructuring was announced on 14 July 2016 and became effective on 13 October 2016.
The restructuring involves the implementation of a new capital structure to materially strengthen the company's balance sheet with a significant debt reduction through a debt to equity conversion. Under the Scheme US$250 million of Guaranteed Notes were exchanged for a combination of US$100 million of reinstated notes and equity and $325 million of Convertible Bonds were exchanged for equity.
In addition, Gulf Keystone has increased its liquidity by raising $25 million through an over-subscribed Open Offer made to existing shareholders representing 10% of its post restructuring equity. Existing shareholders also retained 5% of the diluted share capital, prior to the Open Offer.
LSE-listed Gulf Keystone Petroleum is a Bermudan company. It is the leading independent operator and producer in the Kurdistan Region of Iraq and the operator of the Shaikan field.
The Paul Hastings team was led by recently arrived partner David Ereira with associate Liam Mills on restructuring matters, partner Peter Schwartz and associates Christianne Williams, Albert Aharonian, and Bouchra Haji on finance matters, and Ian McKim on Scheme matters.
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