The financial struggles of Oklahoma City-based Chaparral Energy continue as the company has missed millions in interest payments on some of its loans and will miss more.
The filing of a Form 8-K with the Securities Exchange Commission shows the company faces yet another deadline under a Noteholder Forbearance Agreement. The latest is deadline is midnight Aug. 14, 2020 and Chaparral Energy, after failing to pay $12.5 million in interest on its 8.75% senior notes due 2023 in July indicated it will miss another payment totaling $13.1 million.
The filing indicated Chaparral’s lenders were satisfied with the “unwinding of all of the company’s hedges” and used part of the proceeds to repay borrowings under the Credit Agreement. The unwinding occurred in late July.
The latest forbearance period started July 30 and is set to expire at 11:59 p.m. New York City time on Aug. 14.
“As of the date of this Current Report on Form 8-K, the Company has elected not to make the approximately $13.1 million interest payment with respect to the Notes. Under the indenture governing the Notes, the Company has a 30-day grace period to make the Interest Payments before that non-payment constitutes an event of default with respect to the Notes. The 30-day grace period expires on August 14, 2020.”
Despite the company’s struggles, it finished completion of a Canadian County oil well with a March 28, 2020 date. The Fuji 1206 2 lmh-19 well, with production of 380 barrels of oil a day and 2,305 Mcf of natural gas is located four miles east of El Reno and south of Interstate 40.
