American Standard’s bankruptcy triggers event of default under loans

By Marisa Wong

Morgantown, W.Va., Sept. 17 – American Standard Energy Corp.’s obligations under its amended and restated credit agreement dated Feb. 5, 2014 have been accelerated due to an event of default, according to an 8-K filing with the Securities and Exchange Commission.

The company filed voluntary petitions in the U.S. Bankruptcy Court for the Western District of Texas seeking relief under Chapter 11 on Aug. 3.

The filing of the bankruptcy petitions constitutes an event of default under the credit agreement, resulting in the principal and interest becoming immediately due and payable.

Any efforts to enforce the payment obligations under the credit facility are automatically stayed as a result of the bankruptcy petitions.

The debtors continue to operate their businesses and manage their properties as debtors-in-possession, the 8-K stated.

American Standard is an oil and gas exploration and production company based in Scottsdale, Ariz.

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