Rooster Energy agrees forbearance with noteholders through March 3

New York, Feb. 6 – Rooster Energy Ltd. said it has entered into a limited forbearance agreement with holders of its senior secured notes.

The agreement runs through March 3, according to a news release.

Under the forbearance, the noteholders will not exercise their rights and remedies during the standstill agreement.

A default notice was delivered to the company in late November because of its non-compliance with some covenants.

Rooster had been operating under a waiver of the default but that expired on Dec. 31.

In return for the forbearance, the notes will pay additional interest of 8% in kind from Jan. 1 and Rooster will also pay a 50 basis points forbearance fee, again in kind.

Both will be waived if an acceptable restructuring agreement is reached by the end of the forbearance period.

Rooster also paid $2.5 million to reduce the outstanding principal amount of the notes, leaving $54.7 million outstanding.

Rooster is a Houston-based oil and gas production company. It also has a well service intervention/plugging and abandonment subsidiary.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.