The U.S. Bankruptcy Court issued an order approving Cobalt International Energy’s motion for entry of an order authorizing its performance under a settlement agreement.
As previously reported, “The proposed settlement delivers a $500 million settlement payment to Cobalt, resolves all outstanding disputes between Cobalt and Sonangol, and secures Cobalt’s consensual exit from Angola by transitioning Cobalt’s Angola assets to Sonangol….Through the proposed Angola sale, Cobalt hoped to de-risk its balance sheet and focus its business efforts on its core Gulf of Mexico assets. Sonangol paid an initial deposit of $250 million but failed to obtain Angolan government approvals required to close the deal, and, as a result, the purchase and sale agreement automatically terminated in August 2016….Key terms of the settlement include: $500 million payment by Sonangol to Cobalt, payable in two instalments ($150 million paid by February 23, 2018, and the balance of $350 million paid by July 1, 2018); the resolution of Cobalt’s two International Chamber of Commerce (‘ICC’) arbitrations seated in the United Kingdom and Switzerland (and avoidance or mitigation of potentially substantial costs of continued arbitration); a full release of all disputes, debts, and obligations between the parties (including Sonangol’s release of any claim to the $250 million deposit paid in connection with the contemplated sale); and the transition of ownership of Cobalt’s Angola assets to Sonangol.”
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