Sabine Oil & Gas Corp. (OTCQB: SOGC) has signed an amendment to its forbearance agreement with the lenders under its second lien term loan 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 second lien term loan facility have agreed to forbear from exercising remedies until the earlier of certain events of default under the forbearance agreement or second lien term loan facility, the acceleration or exercise of remedies by any other lender or creditor, and the earlier of the termination of the forbearance period under Sabine’s revolving credit facility and July 15 (the forbearance period), with respect to the company's currently existing events of default under the second lien term loan facility.
In exchange for agreeing to forbear, Sabine has agreed, during the forbearance period, to, among other things, tighten certain covenants under the second lien term loan facility.
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.