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Iona Energy CEO Tom Reynolds. Image courtesy of Iona Energy.

UK-based independent Iona Energy has been forced to restructure its debt as oil prices continue to hover around five year lows.

The company warned Thursday it may have to break its bond covenants or conditions due to the price downturn, BBC said.

In 2013, Iona issued $275 million in senior secured bonds.

Iona said it has started “constructive” talks with some of its largest bondholders to “increase financial flexibility to facilitate the company’s new strategy.”

The company’s new strategy includes refinancing its bonds in conjunction with an acquisition.

Details about its acquisition plans were not disclosed.

Since the bonds were issued, Iona has faced several production problems that have impacted its cash flow.

The company has contended with a number of production interruptions at the Huntington field in the UK North Sea since production started in 2013.

Iona holds a 15 percent stake in the field.

Germany-based E.ON holds a 25 percent operating stake, UK-based Premier Oil holds a 40 percent stake, and Norway-based Noreco holds a 20 percent stake.

Iona also had to push back its projected first oil date for the Orlando field on the UK Continental Shelf by a year to 2016.

The company holds a 75 percent operating stake.

Iona currently has a combined $96.7 million of restricted and unrestricted cash.