Waldorf Production UK (“WPUK”) and Waldorf Energy Finance (“WEF”) (WPUK and WEF collectively as the “Companies”) today provide the following corporate and financial update.

The Companies have been pursuing options to address their ongoing liquidity challenges.

Although discussions with key stakeholders are ongoing:

• WPUK confirms that an event of default has arisen under the 9.75% Senior Secured USD 300,000,000 Bonds 2021/2024 issued by WPUK with ISIN NO0011100935 (the “WPUK Bonds“) due to failure to deliver annual financial statement within four months after the end of the financial year; and
• WEF confirms that the following events of default have arisen under the 12.00% Senior Secured USD 200,000,000 Bonds 2023/2026 issued by WEF with ISIN NO0012847674 (the “WEF Bonds“):
  • non-payment of US$23.25m amortisation and interest payment due on 3 June 2024; and
  • failure to deliver annual financial statement within four months after the end of the financial year.

The Companies further update that their ultimate parent company, Waldorf Energy Partners Limited (“WEPL“), has today taken steps to file for administration in England, and that WPUK’s indirect parent company, Waldorf Production Limited (“WPL“ and, together with WEPL, the “Holdcos“) has announced its intention to appoint administrators. Partners from Interpath Advisory will be appointed as administrators to WEPL and will also be the proposed administrators for WPL.

As a result of the above steps taken by WPL, a cross default has also occurred under the WPUK Bonds in respect of a guarantee granted by the WPUK’s direct parent company, Waldorf Acquisition Co Ltd, in connection with the WEF Bonds. The above steps taken by WPL also constitute additional events of default under the WEF Bonds including a cross default in respect of the WPUK Bonds.

The Holdcos have filed for administration on the basis that their financial situation (which includes material unsecured liabilities to creditors in respect of deferred and contingent consideration under historic sale and purchase agreements) is no longer considered by the directors of those companies to allow them to continue as a going concern.

All stakeholders should be aware that neither of the Companies nor any of the operating subsidiaries in the Group (including the licensee companies) are filing for administration, and the directors of all such companies expect them to continue as a going concern while ongoing liquidity discussions continue.

The Companies and their respective management will be looking to progress discussions with holders of the WPUK Bonds and the WEF Bonds on an urgent basis in order to explain their expectations for the Group and the steps that are proposed to be taken to best protect the interests of creditors.

KeyFacts Energy: Waldorf Production UK country profile