APR Energy seeks loans for second time this year

LIBYA: APR Energy Plc, a supplier of temporary power plants, hired advisers to help renegotiate loans for the second time this year after closing projects in Libya and Yemen. The company expects to breach the terms of a credit facility when covenants are tested on Sept. 30, according to a statement on Wednesday. It negotiated a higher leverageratio limit for $770 million of loans in March, after telling banks it might fail to meet the terms.

APR, based in Jacksonville, Florida, slumped to a firsthalf loss after winding down projects in Libya and Yemen amid political instability. The company, which has $617 million of gross debt, said it hired legal and financial advisers to help renegotiate loan terms, or to organize a refinancing.

"There is a reasonable prospect that the group will be able to successfully execute a renegotiation or refinancing," the company said. Still, "there remains a material uncertainty as to the outcome which casts significant doubt upon the group's ability to continue as a going concern." The company's shares fell 6.3 percent to 77.75 pence at 10:03 a.m. in London. They've tumbled 58 percent this year. APR last year increased its syndicated loan by $120 million to $770 million, according to a filing at the time. The $450 million revolving facility and $320 million term loan both mature in August 2019.