In a statement, the company said the agreement with Lombard Odier Asset Management will help it preserve its existing cash resources.
A quarterly interest payment was due for the three months ended March 31, 2020, and that will no longer be required, with no cash interest payments now payable before March 31, 2021. Interest accruing in 2020 will be calculated on December 31, 2020, and will thereafter be added to the loan principle.
Echo Energy said: “The amendment is a further important step in the successful restructuring of the company's debts and provides a waiver of default for any non-payment of interest previously due under the loan.”
The loan carries interest at 8% and it is one of the debt instruments that Echo has been working to amend.
This agreement will be conditional upon the successful amendment of separate €20mln 8% secured notes which will go before a vote at a noteholder’s meeting on May 22. If approval is secured at that meeting Echo will have successfully restructured its debts to defer all cash interest payments for 2020.