Sabine Oil & Gas enters forbearance agreement with second-lien lenders

By Caroline Salls

Pittsburgh, May 21 – Sabine Oil & Gas Corp. entered into a forbearance agreement with the lenders under its second-lien term loan facility that will give the company additional flexibility as it continues discussions with its creditors regarding its debt and capital structure, according to a news release.

Sabine said financial adviser Lazard and legal adviser Kirkland & Ellis LLP are advising management and the board of directors on strategic alternatives related to its capital structure.

As of May 8, the company said it had a cash balance of $276.9 million, which provides substantial liquidity to fund its current operations. Sabine said it is continuing to pay suppliers and other trade creditors in the ordinary course.

Formerly Forest Oil Corp., Sabine is an oil and gas company based in Houston.

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