CORRAL PETROLEUM HOLDINGS ANNOUNCES PROPOSED LONG-TERM REFINANCING AND Q2 2011 RESULTS

FOR IMMEDIATE RELEASE
Date: August 12, 2011
London

Corral Petroleum Holdings AB (publ) (“Corral”) today announced a comprehensive and long-term refinancing proposal for Corral and its subsidiaries (the “Group”), including Preem AB (“Preem”). The proposal has the support of the Group’s owner who will be injecting 600 MUSD in cash, its syndicate of six Nordic banks and an ad-hoc committee of holders of Existing Notes and certain other noteholders holding in aggregate approximately 63% of the Existing Notes. The Group today also announced its 2011 second quarter and half-years results.

The key elements of the refinancing proposal are as follows:

  • A commitment by Moroncha Holdings Co. Limited, Corral’s direct parent, or its affiliates to contribute 600 MUSD to the Group;
  • A refinancing in full of Preem’s existing credit facilities maturing September 17, 2011 by a syndicate of six Nordic banks;
  • An exchange offer for Corral’s (as initially issued) 221 MEUR (the “Existing € Notes”) and (as initially issued) 250 MUSD (the “Existing $ Notes” and together with the Existing € Notes the “Existing Notes”) Varying Rate Senior Secured Notes due September 18, 2011 supported by certain holders of Existing Notes including an ad-hoc committee of noteholders holding in aggregate approximately 63% of the outstanding Existing Notes; and
  • An extension of the maturity of Corral’s (as initially issued) 79 MEUR and (as initially issued) 35 MUSD varying rate subordinated notes due 2015 (“Subordinated Notes”) to December 31, 2019.

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