LONDON (Alliance News) - Endeavour International Corp Friday said it had extended its forebearance agreements with some noteholders for a further day, as it remains locked in talks about a debt restructuring plan the company wants to put in place relating to a Chapter 11 bankruptcy protection filing.
The company did not make the interest payments it was supposed to make on September 2 on its 12% first priority notes due 2018, 12% second priority notes due 2018 and it 6.5% convertible senior notes due 2016. The failure to pay triggered a 30-day grace period that ended on October 1. Because it was unable to make the payments in the grace period, it defaulted under the terms of each note.
However, it signed forebearance agreements with the majority of the noteholders, under which they agreed not to exercise remedies to try and get the payments out of the company. The agreements were extended for a day on Thursday, and have now been extended until the end of Friday.
"The company remains engaged in discussions with representatives of certain holders of its various classes of indebtedness, including the holders of Notes, regarding a debt restructuring plan that would be effected by the company pursuant to a chapter 11 filing. No assurances can be given, however, that such discussions will result in an agreement for a debt restructuring plan," it said.
The company's shares last traded at USD0.472 in London.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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