Sabine Oil & Gas Corp. (OTCQB: SOGC) has elected to exercise its right to a grace period with respect to a $21 million interest payment due on its 7.25% senior notes due 2019. The interest payment is due June 15; however, the grace period permits the company 30 days to make the interest payment before an event of default occurs.
Sabine has retained financial advisors Lazard and legal advisors Kirkland & Ellis LLP to advise management and the board of directors on strategic alternatives related to its capital structure. Sabine believes it is in the best interests of its stakeholders to actively address the company's debt and capital structure, and is continuing discussions with its creditors and their respective professionals.
As of May 8, the company had a cash balance of $276.9 million, which provides substantial liquidity to fund its current operations. Sabine is continuing to pay suppliers and other trade creditors in the ordinary course.