U.S-based oil and gas producer Chaparral Energy Inc. has reached a temporary agreement with lenders, buying it additional time to complete negotiations.
As per a regulatory filing, Chaparral stated that it had reached a forbearance agreement with senior bond holders and other lenders who agreed to not exercise their right to call the notes at least until 15 April 2016.
Previously, Chaparral missed an interest payment of $16.5m despite a 30-day grace period after its independent auditors had “substantial doubts” over the company’s ability to continue as a going concern.
Chaparral owed $1.6bn in debt to creditors as of December 2015. The company had drawn another $141m in February, maximizing its credit limit. Cash on the company’s books as of March 2016 was $176m.