According to sources, U.S.-based private oil and gas firm Chaparral Energy would miss a mandatory 1 April 2016 coupon payment on its $300m bond.
Separately, the company, in its FY 2015 annual filing stated that it may look at the possibility of filing for a Chapter 11 bankruptcy.
Further, Chaparral had, on 1 March 2016, missed a $16.5m interest payment on another bond, kicking off a 30-day grace period.
As per its FY 2015 filing, Chaparral generated a net loss of $1.3bn for the period and had about $1.6bn in debt.
Chaparral drew down the balance on its $548m RCF in February. The lenders will re-determine the credit facility on 1 May 2016, and it expects its borrowing base to decrease significantly.
The company would then repay the outstanding balance within 30 days or in six monthly installments.