Chagala Group Limited (LON:CGLO) has warned it may not be able to meet an upcoming bond repayment due to the halt imposed on a planned placing and open offer.
The Kazakhstan–based oil group had intended to raise US$5.75mln in September, but this fund raise was blocked by a group of dissident shareholders.
As a result, the company said it would not be able to redeem US$6.7mln worth of Kazakh tenge-denominated bonds issued by subsidiary Caspi Limited on the maturity date of 1 December.
Chagala estimates it will be US$5.9mln short and needs to raise that as a minimum before the due date.
The oiler is exploring other finance options, but so far has not identified anything of sufficient size to repay the KZT Bonds at their maturity.
In addition, Caspi has been told by lender Al Hilal Bank that it believes the ongoing dispute with its dissident shareholders has affected its ability to repay a US$6.5mln facility.
As a result, the bank intends to accelerate the repayment schedule from the original date of November 2019.