Sabine Oil & Gas Corp. (OTCQB: SOGC) has entered into a forbearance agreement with the lenders under its revolving credit facility.
The forbearance agreement will provide the company with additional flexibility as it continues discussions with its creditors and their respective professionals regarding the company's debt and capital structure. The company's financial advisors Lazard and legal advisors Kirkland & Ellis LLP are advising management and the board of directors on strategic alternatives related to its capital structure.
As of April 20, Sabine had a cash balance of $280 million, which provides substantial liquidity to fund its current operations. The company is continuing to pay suppliers and other trade creditors in the ordinary course.