Forbes Energy Services noteholders, lenders extend forbearance periods

By Angela McDaniels

Tacoma, Wash., Oct. 18 – Forbes Energy Services Ltd. received extensions of the forbearance periods for its bank loan and 9% senior notes due 2019, according to an 8-K filing with the Securities and Exchange Commission.

In July, the company reached a forbearance agreement with the holders of more than a majority of the 9% notes under which the forbearing noteholders agreed to forbear from exercising default remedies or accelerating any of the notes resulting from the company’s failure to make its semiannual interest payment due on June 15 on the notes.

On Sept. 13, the company and the forbearing noteholders agreed to extend the forbearance period to 12:59 a.m. ET on Oct. 15 from 1:59 a.m. ET on Sept. 17.

On Oct. 14, they agreed to further extend the forbearance period to 12:59 a.m. ET on Nov. 15.

In July, the lenders agreed to forbear from exercising default remedies or accelerating any debt under the loan agreement resulting from the missed interest payment on the notes.

On Oct. 14, the company and the lenders agreed to extend the forbearance period to 6:01 p.m. ET on Dec. 28 from 6:01 p.m. ET on Oct. 14.

Regions Bank is the agent for the loan.

The company said the extensions will give it more time to continue discussions about a proposed financial restructuring of the company.

Forbes Energy is an Alice, Texas, oilfield services company.

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