A Securities and Exchange Commission filing by struggling Chesapeake Energy reveals the company has made an amendment and waiver to credit agreement from 2018.
As part of the credit agreement, the borrowing base has been redetermined to decrease to $2.3 billion. The filing also stated that the request for the amended credit agreement was made by Chesapeake Energy and agreed to by a majority of the lenders.
MUFG Union Bank, N.A. is the administrative agent of the amended agreement and the lenders include: MUFG Bank, LTD., WELLS FARGO Bank National Association, JPMorgan Chase Bank, N.A., Bank of America, N.A., BMO Harris Bank, N.A., Citicorp North America, Inc., Mizuho Bank, LTD., Royal Bank of Canada, DNB Capital LLC, Export Development Canada, Goldman Sachs Bank USA, Morgan Stanley Bank, N.A. and Morgan Stanley Senior Funding, Inc.
The filing with the SEC also confirmed that on June 15 of this year, Chesapeake chose not to make interest payments of approximately $3.4 million and $10.1 million due on the company’s outstanding senior notes due 2021 and 2027.
The company stated in the filing that under the indentures of the notes, it has a 30-day grace period to make the interest payments before a default can be declared.
Speculation arose earlier that the company might file Chapter 11 bankruptcy sometime this week because of its billions of dollars worth of debts.
Source: SEC