APR Energy confirmed on Monday that, in connection with the previously announced expiration of its Libya project and its resulting demobilisation of power generating assets from that project, the Group may not meet certain financial covenants associated with its bank facility on future testing dates.
Although currently in compliance with its financial covenants, the Group has advised its banking syndicate that it may not be able to satisfy certain financial covenants going forward (which, if it occurred, could lead to removal or reduction of its financing arrangements) and is pursuing an amendment to its credit facility that would provide the desired relief in advance of when required to ensure continued compliance.
The amendment process is proceeding and the Group is engaged in positive discussions with its banking syndicate.
The Group reconfirms its full-year net debt guidance of $550-570 million, as announced on 23 December 2014. The Group expects to continue to generate strong positive cash flow from operations and will actively manage fleet capital expenditure, ensuring solid liquidity and a robust cash position.
(Banking image via Shutterstock)