On June 30, Sabine Oil & Gas Corp. and its lenders amended the forbearance agreement to its revolving credit facility, the company said July 1.
Additional financial flexibility will be available as Sabine discusses debt and capital structure with creditors and professionals, the company added.
Lenders agreed to not exercise remedies until there is a default under the forbearance or facility, or remedies are accelerated by any other lenders or creditors during the July 15 forbearance period.
During this time Sabine will limit the sale of its assets, appoint a chief restructuring officer, separate proceeds from collateral under the facility and pay a forbearance fee equal to $500,000.
Lazard is Sabine’s financial adviser.
Kirkland & Ellis LLP is advising management and the board of directors on capital structure strategic alternatives.
On May 8, Sabine’s cash balance totaled about $276.9 million. Suppliers and other trade creditors are currently being paid in ordinary course.
The Form 8-K filed with the Securities and Exchange Commission contains more information about the forbearance agreement amendment
Houston-based Sabine Oil & Gas Corp. acquires and develops domestic oil and natural gas properties.
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