Emerald Oil’s administrative agent, Cortland Capital Market Services, filed with the U.S. Bankruptcy Court a notice second D.I.P. financing amendment for the Company’s amended and restated credit agreement.
The filing notes, “The Borrower has informed the Administrative Agent and the Lenders that the Postpetition Defaults (set forth on Schedule A) have occurred and are continuing as of the date hereof, such Postpetition Defaults being collectively referred to as the Specified Defaults: The Debtors failed to comply with the Sale Milestones, which constitutes a Postpetition Default under clause (k) of the definition thereof.”
The filing continues, “The Debtors failed to comply with the requirement of Section 8.19 of the Credit Agreement requiring the delivery of the weekly variance reports. The Debtors failed to comply with the requirement of paragraph 34 of the Financing Order requiring that the Debtors’ bank accounts be with the Agent. The Debtors failed to comply with the requirements of paragraphs 38 through 41 of the Financing Order requiring the monthly update of the Budget and compliance with permitted negative variance as set forth therein. The Debtors failed to comply with the requirements of paragraph 60 of the Financing Order requiring the delivery of the weekly Reporting Information with respect of receipts and budgeted cash usage.”
Read more oil & gas bankruptcy news.