LGO Energy agrees debt repayment deal with BNP Paribas

4th Mar 2016 15:06

(ShareCast News) - AIM-listed LGO Energy has reached an agreement with BNP Paribas that will see its debt repayment reduced.Under the new agreement, the March 2016 installment will be cut to $100,000, after which the remaining outstanding balance will be recovered over the following 18 months.The company, which identifies, acquires and develops assets in the oil and gas sector, said a further extension of the period of reduced payment into April would require a separate agreement in due course.The final repayment under the indicative repayment schedule is due no later than September 2017.Chief executive Neil Ritson said: "Whilst the company welcomes the contribution of BNP Paribas to managing short-term cash flow, which remains tight in this period of low commodity prices and reduced field activity, it should be noted that the repayment schedule will require substantial new funding to be raised by the company which remains uncertain and cannot be guaranteed."At 1545 GMT, shares were down 22% to 0.31p.