ERC Completes Debt Restructuring, Pays $315M To Senior, Subordinated Lenders
Date
12/22/2024 11:27:01 PM
(MENAFN- Daily News Egypt)
The Egyptian Refining Company (ERC) has concluded its Senior and Subordinated Debt Restructuring, marking a significant milestone in its financial strategy. As part of the agreement, ERC made payments totaling $315 million, which included $33.3m in fees and default interest related to the restructuring process.
ERC's scheduled debt repayment saw $233.6m allocated to senior lenders, comprising $197m in principal repayment and $36.6m in interest and fees. Additionally, $48.m was paid to subordinated lenders as part of the restructuring terms.
Following this completion, ERC's net senior debt has been reduced to $363m, down from an initial $2.35bn, with expectations for full repayment by December 2025. Subordinated debt now stands at $751m, with repayment scheduled to conclude by 2030.
This debt reduction sets the stage for ERC to begin distributing dividends to its shareholders, with the first payout anticipated in 2026. The company remains committed to its long-term financial strategy, which focuses on sustainable growth and financial stability. By improving its financial and operational performance, ERC aims to deliver value to shareholders through strategic investments and efficient resource management.
Additionally, ERC is dedicated to maintaining a balanced approach between growth and dividend distribution, ensuring it continues to expand its business while providing attractive returns to shareholders in the years ahead.
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