Tethys Petroleum Limited Appoints Casey McCandless as Interim CFO; Announces Loan Amendment Agreement
On January 17, 2020 Tethys announced a loan amendment agreement with one of its lenders to restructure the loan originally made to the Company by AGR Energy Limited No. 1 which had an outstanding balance of approximately USD 12.1 million, the key terms of which are described below: The lender provided a waiver of all past defaults; The maturity date was extended from June 30, 2017 to June 30, 2021; The outstanding loan balance was reduced from USD 12.1 million to USD 9.0 million; The Loan which bore a default interest rate of 18% no longer bears interest; and Twelve monthly repayments of $750,000 will be due commencing July 31, 2020. It was also announced that the monetary claims under the Loan were assigned by AGR Energy Limited No. 1 to a private individual in 2016. In conjunction with the Amendment Agreement, further assignments were made. Tethys announced that it has agreed and entered into a further loan amendment agreement with the new holder of the loan, the key terms of which are described below: Tethys shall have the option to either: Make a repayment of the outstanding balance in the amount of USD 3,000,000 on December 31, 2020, June 30, 2021 and December 31, 2021; or Make a repayment of USD 7,000,000 by August 25, 2020 upon which Tethys will receive a $2,000,000 early payment discount and the outstanding balance will be considered repaid in full.