- IGas has raised $6.0m following the sale of secured bonds with a total nominal value of $8.0 million at a price of 75% to par and now no longer expects a breach of its daily liquidity covenant in 2016.

The company now forecasts that it will be compliant with its daily liquidity covenant until March 2017, when the next amortisation and interest payment is due in respect of the secured bonds, in addition to continuing to meet its ordinary course financing and trading obligations.

The cash proceeds realised from the sale of the secured bonds are available for general corporate purposes. The transaction, which exchanged and completed today, was effected in the market through an intermediary.

As previously announced, the company's current forecasts also project non-compliance with its leverage covenants as at 31 December 2016.

In the event of a breach of either leverage covenant, an equity cure provision exists within the bond agreements, such that a breach can be cured within 25 business days of the delivery of the compliance certificate for that period.

For the period ending 31 December 2016, the compliance certificate must be delivered by 30 April 2017, and accordingly the latest date for any equity cure would be early June 2017.

At 3:55pm: [LON:IGAS] Igas Energy PLC share price was +1.25p at 12p

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