Sabine amends forbearance agreement to revolving credit facility

Sabine Oil & Gas Corp. (OTCQB: SOGC) has signed an amendment to its forbearance agreement with the lenders under its revolving credit facility. 

The amended 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. Pursuant to the amendment to the forbearance agreement, the lenders under the revolving credit facility have agreed to forbear from exercising remedies until the earlier of certain events of default under the forbearance agreement or revolving credit facility, the acceleration or exercise of remedies by any other lender or creditor, and July 15 (the forbearance period), with respect to the company's currently existing events of default under the revolving credit facility. 

In exchange for agreeing to forbear, Sabine has agreed during the forbearance period to further limit its ability to sell assets, undertake efforts to appoint a chief restructuring officer, implement procedures to segregate the proceeds of collateral under the revolving credit facility, and pay a forbearance fee equal to $500,000.

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.

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