STONE ENERGY CORPORATION (SGY) Files An 8-K Other EventsItem 8.01.
Stone Energy Corporation and certain of its subsidiaries (collectively, the “Company”) entered into a restructuring support agreement, as amended (the “RSA”), with certain holders of its 1 3⁄% Senior Convertible Notes due 2017 (the “2017 Notes”) and 7 1⁄% Senior Notes due 2022 (the “2022 Notes”, and together with the 2017 Notes, the “Senior Notes”) to support a restructuring on the terms of a pre-packaged plan of reorganization as described therein. The Company has an interest payment obligation under the 2022 Notes of approximately $29 million, due on November 15, 2016. The indenture governing the 2022 Notes provides a 30-day grace period that extends the latest date for making this interest payment to December 15, 2016, before an event of default occurs under the indenture. Although the Company has sufficient liquidity to make the interest payment by the due date, the Company has elected to not make this interest payment on the due date and plans to utilize the 30-day grace period provided by the indenture. If the Company does not make its interest payment or file for bankruptcy to the terms of the RSA by or before December 15, 2016, an event of default would occur under the indenture governing the 2022 Notes, which would give the trustee or the holders of at least 25% of principal amount of the 2022 Notes the option to accelerate maturity of the principal, plus any accrued and unpaid interest, on the 2022 Notes. An event of default under the 2022 Notes may result in defaults and acceleration of maturities under the Company’s other debt instruments.
About STONE ENERGY CORPORATION (SGY)
