Buru Energy Limited (Buru) (ASX:BRU) has announced it has entered into an agreement with Alcoa of Australia Limited (Alcoa) to re-schedule its current debt repayment obligations.
The oil and gas explorer says terms of the repayment were revised in August 2016, with the final $12.5 million due on 30 June 2018, unsecured with no interest payable.
Buru and Alcoa have now reached a further agreement varying the repayment terms, which will now be made in four tranches, starting with $5 million due in July 2017, and a further $2.5 million due in December every year until 2020.
The company says the debt will continue to be unsecured, but now subject to an agreed market based interest rate on outstanding balances from January 2018.
Shares in Buru Energy Limited (Buru) (ASX:BRU) are currently trading flat at 16.5 cents.