Rex Energy Corp. said in a regulatory filing this week it failed to make a semi-annual interest payment that was due on Monday (April 2) for its senior notes, necessitating a forbearance agreement with lenders to prevent the acceleration of other debt obligations.
The company entered the forbearance agreement through April 16 with a lending group led by Angelo, Gordon & Co. It prevents the lenders from taking any enforcement actions, such as accelerating obligations under Rex’s $300 million credit agreement, which was violated by the interest payment default.
Rex said it entered the forbearance to allow more time for talks with its lenders about financial alternatives that could strengthen its balance sheet, including the possibility of filing for bankruptcy to restructure.
“There can be no assurance that the company will reach any agreement with any stakeholders on a financial restructuring of the company by the end of the forbearance period, if at all, or that the forbearance period will be extended,” the company said in a filing made late Tuesday with the U.S. Securities and Exchange Commission.Read more of this article at NGI by clicking here.
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