Murray Energy Corporation has announced that it has entered into forbearance agreements with lenders holding in excess of 50% of outstanding loans under its superpriority credit and guaranty agreement and with lenders holding in excess of 50% of outstanding loans under its ABL and FILO credit facilities. Murray Energy also announced that it has elected not to make the amortisation and interest payments due on 30 September 2019 as provided for in its superpriority credit and guaranty agreement.
Under the terms of the forbearance agreements, the lenders have agreed to forbear from exercising any and all remedies available to them in respect of any event of default arising from the missed amortisation and interest payments due on 30 September 2019. The forbearance period extends through 11:59 p.m. (New York time) on 14 October 2019, unless extended, and will terminate upon the earlier of the end of the forbearance period or the occurrence of a specified forbearance termination event.
The forbearance agreements are expected to allow Murray Energy to continue discussions with its lenders about various strategic options to strengthen the company’s business, improve its liquidity position, deleverage its balance sheet, and achieve a more sustainable capital structure that supports the company's long-term business plan and results in long-term value generation for the benefit of its employees, customers, vendors and other key stakeholders.
Read the article online at: https://www.worldcoal.com/coal/03102019/murray-energy-enters-into-forbearance-agreements-with-lenders/