Xinergy: Aries agreements terminated amid failure to provide financing

By Caroline Salls

Pittsburgh, Dec. 16 – Xinergy Ltd. terminated its letter agreement with Aries Energy Group, LLP and credit agreement with Aries Energy Venture Investor, LLC, according to a news release.

Xinergy said the signed and proposed Aries financing did not close because Aries failed to fulfill its obligations under the credit agreement and fund the financing.

As previously reported, the company retained Global Hunter Securities as its financial adviser while it explores financial and strategic alternatives.

Xinergy said last week that it would make a $9 million payment toward interest on its 9¼% senior secured notes due May 13, 2019 that was initially due on Nov. 17 using cash from operations.

Xinergy said the original payment default was a result of a delay in closing on a $25 million convertible loan with Aries Energy Group Venture Investor, which it planned to use a portion of in order to pay the interest.

Xinergy is a Knoxville, Tenn.-based coal producer.

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