UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K

 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): March 30, 2016
 

ERIN ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
 

  
Delaware
 
001-34525
 
30-0349798
(State or other jurisdiction of
incorporation)
 
(Commission File Number)
 
(I.R.S. Employer Identification No.)
 
1330 Post Oak Blvd., Suite 2250, Houston, Texas 77056
(Address of principal executive offices) (Zip Code)
 
(713) 797-2940
(Registrant's telephone number, including area code)


 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2.below):
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
  
 

    


 

Item 1.01    Entry into a Material Definitive Agreement.

On March 30, 2016, Erin Petroleum Nigeria Limited (“EPNL”), a wholly owned subsidiary of Erin Energy Corporation (the “Company”), obtained a waiver from Zenith Bank Plc (“Zenith Bank”) to defer for 90 days the principal payment due on March 31, 2016 under EPNL’s five-year senior secured term loan, dated September 30, 2014 (the “Term Loan Facility”). The preceding description of the deferment does not purport to be complete and is qualified in its entirety by reference to Zenith Bank’s letter to EPNL, dated March 30, 2016, which is attached as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Also as previously reported in the Company’s Annual Report on Form 10-K filed March 24, 2016, Zenith Bank has agreed to waive the funding requirements of the Debt Service Reserve Account associated with the Term Loan Facility until December 31, 2016.

Item 8.01    Other Events.

On April 4, 2016, the Company issued a press release announcing that it had obtained a waiver from Zenith Bank in connection with the Term Loan Facility. A copy of the press release is filed as Exhibit 99.1 to this report, which is incorporated by reference into this Item 8.01.

 

Item 9.01
Financial Statements and Exhibits.
10.1
Deferment Letter, dated March 30, 2016, from Zenith Bank Plc.
99.1
Press release issued by Erin Energy Corporation, dated April 4, 2016.

    


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
ERIN ENERGY CORPORATION
 
 
 
 
 
 
 
By:
/s/ Daniel Ogbonna
 
 
Daniel Ogbonna
 
 
Senior Vice President and Chief Financial Officer

Date: April 5, 2016
 
 






    


Exhibit 10.1

March 30, 2016
Erin Petroleum Nigeria Limited
Plot 1649, Olosa Street,
Victoria Island
Lagos.
Attention: Femi Ayoade
Dear Sir,
PAYMENT OF MATURING PRINCIPAL AND INTEREST OBLIGATIONS ON ERIN PETROLEUM (FORMERLY CAMAC PETROLEUM) TERM LOAN FACILITY
We refer to your letter dated March 30, 2016 wherein you requested for flexibility in repayment terms with respect to the loan repayment obligations due on the 31 st of March 2016 and wish to recap the issues agreed by both parties as follows:
1.
That the principal of $5,625,000.00 due for repayment on March 31 st 2016 will be deferred for 90 days and paid on June 30, 2016, while the accrued interest of $2,368,083.04 will be paid on due date of March 31 st 2016.
2.
That the Principal and Interest of N70,325,448.64 and N90,912,359.43 respectively due for payment on the Naira Facility on March 31 st 2016 shall be paid in full on due date.
3.
That in consideration of the deferment of the principal due on March 31 st 2016 to June 30, 2016, a deferment fee of $56,250.00 (being 1% flat on the deferred principal amount) shall be paid to Zenith Bank on March 31 st 2016.
Once again, we wish to emphasis the importance of making good the repayment obligations on the dates as stated above.
Yours faithfully,
For: ZENITH BANK PLC

/s/ Sheriff Ogunrinola
 
/s/ Michael Aknowuru
Sheriff Ogunrinola
Senior Manager
 
Michael Anokwuru
Assistant General Manager





                               
                 Exhibit 99.1


News Release
April 04, 2016

Erin Energy Announces Agreement with Zenith Bank on Terms of Loan Facility

HOUSTON , April 04, 2016 - Erin Energy Corporation (Erin Energy or the Company) (NYSE MKT: ERN) announced today it has obtained a waiver to the funding requirements of the Debt Service Reserve Account associated with the Zenith Bank Note until December 31, 2016. The Company was also granted a 90-day deferment of the principal payment previously due on March 31 2016, whilst re-modification discussions of the loan structure continue .

“ We appreciate the continued support of Zenith Bank and their belief in the growth of our company. In this depressed commodity price environment, it is good to have partners that are working with us for the long-term and for the success of Erin Energy. ” said Daniel Ogbonna, Senior Vice President and Chief Financial Officer.

The Company has satisfied the interest obligations due March 31, 2016 and has formally submitted a loan re-modification proposal, which Zenith Bank is currently reviewing with final agreement expected during the second quarter of 2016.

Erin Energy Corporation is an independent oil and gas exploration and production company focused on energy resources in sub-Saharan Africa. Its asset portfolio consists of 9 licenses across 4 countries covering an area of 40,000 square kilometres (10 million acres), including current production and other exploration projects offshore Nigeria, as well as exploration licenses offshore Ghana, Kenya and The Gambia, and onshore Kenya. Erin Energy is headquartered in Houston, Texas, and is listed on the New York and Johannesburg Stock Exchanges under the ticker symbol ERN. More information about Erin Energy can be found at www.erinenergy.com .
 
Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, concerning activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Although the Company believes the expectations reflected in these forward-looking statements are reasonable, they involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect.

The Company’s actual results could differ materially from those anticipated or implied in these forward-looking statements due to a variety of factors, including the Company’s ability to successfully finance, drill, produce and/or develop the wells and prospects identified in this release, and risks and other risk factors discussed in the Company’s periodic reports filed with the Securities

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and Exchange Commission. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. You should not place undue reliance on forward-looking statements, which speak only as of their respective dates. The Company undertakes no duty to update these forward-looking statements.

Source:  Erin Energy Corporation
 
Contact:
Lionel McBee, +1 713 797 2960
Director, Investor Relations and Corporate Communications
lionel.mcbee@erinenergy.com



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