Baseline misses semiannual interest payment on 12½% senior secured notes

By Jennifer Lanning Drey

Portland, Ore., Oct. 8 - Baseline Oil & Gas Corp. missed the Oct. 1 required interest payment on its 12½% senior secured notes due 2012, Patrick H. McGarey, chief financial officer of Baseline, said Wednesday.

The amount due was $7.187 million.

McGarey said the missed payment stemmed from the fact that the company is negotiating a possible extension on the repurchase of the senior secured notes.

As previously reported, in August Baseline began a change-of-control offer to purchase for cash any and all of the outstanding notes. The company received the necessary consents from holders of all $115 million of the senior secured notes on Aug. 22.

Baseline was scheduled to pay 101% plus accrued interest for the notes on Oct. 6.

Baseline is a San Antonio-based independent oil and gas exploration and development company.

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