Quicksilver Canadian unit enters forbearance deal tied to bankruptcy

By Caroline Salls

Pittsburgh, Feb. 22 – Quicksilver Resources Inc. wholly owned subsidiary Quicksilver Resources Canada Inc. entered into a fifth forbearance agreement with global administrative agent JPMorgan Chase Bank, NA and Canadian administrative agent JPMorgan Chase Bank, NA, Toronto Branch, according to an 8-K filed Monday with the Securities and Exchange Commission.

Under the fifth forbearance agreement, the agents will not enforce any default-related rights on the subsidiary’s Canadian credit agreement tied to the company’s Chapter 11 bankruptcy filing.

The forbearance period will expire on the earlier of April 1, the filing of any litigation against Quicksilver Canada or some of its subsidiary guarantors seeking more than $5 million, the acceleration of more than $5 million of any other debt of any non-filer, any challenge by a non-filer of the validity or enforceability of the forbearance agreement or Canadian loan document, the filing of bankruptcy, insolvency, receivership or restructuring proceedings by any non-filer, occurrence of a cash collateral order termination event, failure of the company to pay interest on the loans and failure to comply with the company’s cash collateral order and obligations under an order approving an asset sale to BlueStone Natural Resource II, LLC.

Quicksilver is a Fort Worth-based independent oil and gas exploration and production company. The company filed for bankruptcy on March 17, 2015 in the U.S. Bankruptcy Court for the District of Delaware under Chapter 11 case number 15-10585.

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