The Company, along with its recently retained financial advisor,As Zero Hedge wrote last week, the smallish E&P companies are due for a lot of pain as secured lenders make sure their collateral is preserved among declining nat gas and oil and collapse borrowing bases, setting up for showdowns between equityholders, bondholders, lenders and company management teams. Sphere: Related Content Print this post
Parkman Whaling LLC, are discussing with the bank lender group the Company’s options to remedy the borrowing base deficiency, as permitted under the credit agreement, as well as discussing amendments to the agreement to provide waivers of compliance with financial and other covenants.
Monday, March 16, 2009
Posted by Tyler Durden at 8:20 AM
Today smallish E&P Energy Partners Limited (EPL), in a pretty horrendous development for bondholders, announced that it had received notification from its bank administrative agent that its borrowing base was being reduced from $150 million to $45 million. As EPL points out the obvious "The Company currently has
$83 million drawn under this facility, which results in a borrowing base deficiency of $38 million. The Company has been in discussions with the bank lender group about potential financial and other covenant breaches that are likely to occur during 2009 under its revolving credit facility." Additionally, EPL is expecting that auditors KPMG will add going concern language to its upcoming 10-K, and the company adds: