Finance - Restructuring
Connacher doesn’t have to immediately pay US$128 million loan. Small oil sands developers including Connacher fight for survival with crude trading at just over half its value from June.
After Shell’s $70 billion deal, ExxonMobil and Chevron are in the hunt with several large U.S. E&Ps. But in the Permian Basin, the bid-ask spread remains too wide for deals.
Shell, already one of the world’s largest oil and gas companies, would strengthen its LNG portfolio and gain access to premier offshore Brazil deepwater oil in a mega-merger.
Connacher Oil & Gas Ltd.’s bid to restructure out of court in Canada was rejected after Credit Suisse sued in New York state court, citing Connacher’s loan default, Bloomberg said.
Endeavor sold $300 million of eight-year senior unsecured debt to refinance its asset-based line of credit, according data compiled by Bloomberg. Energy companies are trying to shore up their finances.
Houston-based Harvest has tried twice to sell its Venezuelan assets. The company holds a 20% stake in Petrodelta, a joint venture with state-owned Petroleos de Venezuela SA, Reuters said.
With acreage the Barnett Shale, Delaware Basin and Horn River Basin, the company wants to reorganize and is continuing to pay vendors, maintain payroll.
Operations in the U.S. and Canada will not be interrupted due to the filings, and motions were filed with the court to ensure their continuation.
About $32 million in second-lien financing was also part of the exit financing.
David C. Baggett is managing partner of Opportune LLP, which Endeavour is working with during a financial restructuring, the company said.
The restructuring will "bolster liquidity," said Anthony C. Schnur, CEO.
As a result of the previously announced restructuring, Lone Pine whittled long term debt to CA $90 million, down from CA $395 million, the company said.