International law firm Ashurst is advising EnQuest PLC, the largest independent UK oil producer in the UK North Sea, on its financial restructuring.

The restructuring includes the amendment and restatement of a revolving credit facility of up to US$1.7 billion, the exchange of US$650 million high yield notes for new notes, the amendment of the terms governing £155 million retail notes and a placing and open offer.

Aspects of the restructuring are to be effected by means of a UK scheme of arrangement. The first hearing is expected to take place on 24 October 2016. The company also intends to seek recognition of the scheme under Chapter 15 of the US Bankruptcy Code.

The global reduction in oil prices has had a significant negative impact on the Company's revenues, liquidity and available cash resources. This situation has been exacerbated by the company's level of debt and the significant capital expenditure required for the development of assets including, in particular, Kraken, the company's largest project to date. A primary objective of the restructuring is to enable the company to direct its resources towards bringing the Kraken development to first oil on schedule in H1 2017.

Giles Boothman, who leads Ashurst's restructuring and special situations team, commented:

''This is the largest and most complex European upstream oil company restructuring in recent years, involving senior debt, high yield bonds, retail notes and a simultaneous equity raise. It has required a large team working across a complex range of equity, debt, restructuring and capital market issues in multiple jurisdictions and we are delighted to have played the central role acting alongside Rothschild."

Stefan Ricketts, EnQuest's general counsel  said:

"Ashurst has brought to bear a proactive and user friendly team operating across a broad range of disciplines. This transaction has required the coordination of heavy workloads to tight deadlines on multiple interconnected work-streams and Ashurst have supported EnQuest with considerable expertise and efficiency."

The Ashurst team led by Giles Boothman also included partners Huw Thomas on the revised RCF, Karen Davies and Eric Stuart on the equity raise, Anna-Marie Slot on the high yield bonds and Julia Derrick on corporate and oil and gas aspects and senior associates Ru-Woei Foong, Alex Biles, Alinta Kemeny, Jeffrey Johnson and Marianna Kennedy as well as teams in London and New York.

Ashurst has led the negotiations for the restructuring, working with NM Rothschild & Sons (financial advisers to the company), KPMG and Herbert Smith Freehills (advisers to the RCF Lenders) and Houlihan Lokey and Weil, Gotshal & Manges (advisers to an ad hoc committee of bondholders).