(MENAFNGulf Keystone, a Kurdish oil company, is set to be dominated by its bondholders, including distressed-debt funds, after the firm proposed to swap USD500 million of debt for shares.
In detail, the London-listed firm said current shareholders, which include Capital Group, Prudential, Barclays and BlackRock, would be diluted to 5 percent ownership after debt conversion into equity.
Additionally, Sothic Capital, a London-based fund led by former distressed specialists from JP Morgan, was among the key bondholders who would end up with a significant stake in Gulf Keystone.
It's worth mentioning that Gulf Keystone has been struggling since earlier this year to meet bond interest payments as weak oil prices from Iraqi Kurdistan government have crippled its balance sheet.
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