| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Q > Headlines for Quicksilver Resources Inc. > News item |
Quicksilver Resources skips Feb. 17 interest payment on 9 1/8% notes
By Marisa Wong
Madison, Wis., Feb. 17 – Quicksilver Resources Inc. said it has decided not to make the roughly $13.6 million interest payment due Feb. 17 on its 9 1/8% senior notes due 2019 and may need to file for bankruptcy.
Under the terms of the indenture governing the notes, the company has a 30-day grace period before the failure to make the interest payment results in an event of default.
The company said it believes it is in the best interests of its stakeholders to continue to focus on actively addressing its debt and capital structure and intends to continue discussions with its creditors during the 30-day grace period.
If the company does not make the interest payment before the end of the grace period, the trustee or the holders of at least 25% aggregate principal amount of the outstanding notes may declare the principal and accrued interest for all notes due and payable immediately.
The acceleration of the principal under the 9 1/8% notes would also result in defaults under the company’s other debt.
The company said it may need to seek voluntary protection under Chapter 11 to restructure its capital structure if it does not successfully restructure its debt, improve its short- and long-term liquidity position or complete any strategic transactions in a timely manner.
The company has retained Houlihan Lokey Capital, Inc., Deloitte Transactions and Business Analytics LLP and other advisers to assist in evaluating its options to address near-term debt maturities, enhance its liquidity position and evaluate strategic alternatives.
Quicksilver is a Fort Worth-based independent oil and gas exploration and production company.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.