Hi @cmonaussie Any thoughts on the latest move by SNDE?

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tt2000

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12/01/21

22:35

Post #: 50124164
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Originally posted by tt2000 ↑

Looks like Eric is calling their bluff. They've missed making the interest payments, but surprisingly as a result the Forbearance Agreement terminated, but at the expense of now being in default.

I think Eric is saying to the banks, if you call the debt, equity will lose but the banks will also not get 100c in the dollar. He's calling their bluff.

Will they call the debt, or come back to the table to negotiate (especially given the higher oil price)...

I will only consider this again if the debt issue can be resolved (and sans capex restrictions etc. )

On December 31, 2020, the Borrower elected to not make the interest payment of approximately $7 million due under its second lien term loan facility (the “Term Loan” on such date. The three business day grace period to make such payment expires Wednesday, January 6, 2021. After such time, the lenders under the Term Loan may demand immediate repayment of the amounts outstanding under the Term Loan. In addition, a cross-default under the Borrower’s senior secured credit facility will be triggered.

Borrower was unable to timely comply with the requirement to deliver a Term Loan Forbearance Agreement on or before December 23, 2020, as required pursuant to Section 3.4(h) (“Term Loan Forbearance Requirement”. As a result, the Forbearance Period set forth in the Forbearance Agreement terminated on December 23, 2020. In furtherance of the foregoing, Borrower requests that Administrative Agent and the Lenders waive the Term Loan Forbearance Requirement

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Hi @cmonaussie

Any thoughts on the latest move by SNDE?

SEA Price at posting: 16.5¢ Sentiment: None Disclosure: Not Held
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0 Great analysis

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