Rooster Energy: Noteholders have not accelerated payment, talks go on

By Wendy Van Sickle

Columbus, Ohio, Jan. 3 – Rooster Energy Ltd. said holders of its senior secured notes have not accelerated payment following giving notice of default in late November for non-compliance with two covenants of the second amendment and waiver to the note purchase agreement and the company’s missing a principal repayment.

The waiver was due to expire Dec. 31. As of Tuesday, the company had not made a $4.5 million principal payment due by Dec. 31, according to a press release, which noted holders did reserve all legal rights and remedies.

Rooster said it is continuing discussion with noteholders who may exercise their legal remedies against the company at any time, in which case the company will likely seek relief under bankruptcy or reorganization laws.

Rooster Energy is a Houston-based oil and gas exploration production company combined with a well service intervention/plugging and abandonment company.

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