Forbes Energy lenders extend forbearance, commitments now $30 million

By Caroline Salls

Pittsburgh, Dec. 28 – Forbes Energy Services Ltd. entered into an amended and restated forbearance agreement and a fourth amendment to its loan and security agreement, according to an 8-K filed Dec. 28 with the Securities and Exchange Commission.

As previously reported, under the loan forbearance, the agent and lenders agreed not to exercise any rights related to the company’s failure to make an interest payment due June 15, 2016 on its 9% senior notes due 2019.

The amendment extends the forbearance period until the earlier of 5:01 p.m. ET and the occurrence of other specified events.

The forbearance period was previously scheduled to expire on Dec. 28.

In addition, the lenders agreed to forbear from exercising specified rights available to them resulting from the occurrence of possible additional defaults.

The loan agreement was amended to reduce the commitments to $30 million.

Interest is the Base rate plus 100 basis points or Libor plus 200 bps.

Forbes announced on Dec. 23 that it had reached a restructuring support agreement with holders of 65.4% of its 9% notes.

Under the agreement, the company will file for Chapter 11 by Jan. 23 in order to implement the prepackaged plan.

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

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