StockMarketWire.com - Ncondezi Energy said it had asked lenders for a 12-month extension and interest rate reduction on a $5.1m loan.

The company requested the interest rate by cut to 12%, paid at maturity, which it said represented a 52% reduction over previously agreed rates.

Lenders were also given an option to swap debt for equity at a conversion price of 10.0p per share, representing a premium of 33% to the closing share price on 9 August.

To date, Ncondezi said it had received indications from lenders representing over 60% of the loan that they will accept the restructuring proposal, with no rejections.

These includes the company's chairman Michael Haworth and director Estevao Pale and Chris Schutte.

'The balance of lenders, including one party that represents 37% of the loan, are to be engaged within the near future,' Ncondezi said.

A further update to shareholders would be provided at the end of August before the L=loan's current maturity date on 2 September.








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