Gulf Keystone Bondholders Said to Ready Plan to Take Control
- Debt swap may take place if company fails to find new funding
- Kurdistan-focused oil explorer has been hit by crude slump
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Gulf Keystone Petroleum Ltd. bondholders are preparing a plan that would swap some debt into equity to take control of the oil producer, according to people familiar with the matter.
Guaranteed and convertible bondholders are working on the plan to take the company if it fails to find substantial new funding, said the people, who asked not to be identified because the talks are private. Under the proposal, holders of $250 million of guaranteed notes due April 2017 would get a majority of the company, while convertible bondholders and shareholders would have smaller stakes, they said.