(Business in Cameroon) - BGFI Cameroon validates a debt restructuring offer for the CFA15 billion ($26 million) owed by the local subsidiary of Victoria Oil & Gas, Gaz du Cameroon (GDC). This was revealed by Victoria Oil and Gas but, the company did not comment on the impact of this restructuration on GDC’s performance.
Let’s remind that this credit facility was granted in April 2016, and the firm consumed it till 2017. According to the agreement at the time, the mining firm should pay only the interest within six months before it pays the loan and its cumulated interest. It seems that Gaz du Cameroun S. A. (GDC) had some difficulties paying because, by the time the restructuring agreement was signed, it still owed $20.5 million.
In the new agreement, the debt will be paid within 5 years and the interest paid over 12 months starting from July 15, 2017. The loan will then be refunded by installments at an annual rate of 7.15% (less than the rate offered by the local market).
The security terms remain unchanged, notably, some clients’ payment, a letter of comfort and some assurances.