Kazakhstan-based oil and gas producer Zhaikmunai (ZKM.LN) announced Wednesday a $300 million placing of new shares to fund its operations.
If the placing fails, Zhaikmunai said, it would need to urgently consider alternative sources of funding for its operations. In particular, if such funding isn't obtained by mid-September, then Zhaikmunai will need to suspend all capital expenditures until it obtains alternative funding sources, it said.
A major part of the new equity will be in the form of global depositary receipts, or GDRs, to be traded in London.
The company said 45 million GDRs will be issued at $4 a unit, and it expects trading will commence in mid-August, 2009.
Zhaikmunai also said that Claremont Holdings Ltd., which owns a 90% stake in the company, has agreed to subscribe to 30 million GDRs.
The company said that the credit committees of the majority of its lenders have approved a term sheet of debt restructuring. The new agreement envisages a waiver of some default events and reduction of the debt to $383 million with interest payment increase to Libor plus 7%.