Sundance Energy enters into forbearance with credit agreement lenders

By Cady Vishniac

Detroit, Dec. 23 – Sundance Energy Inc. has entered into forbearance for its credit facility with Toronto Dominion (Texas) LLC as administrative agent and TD Bank as a lender, according to an 8-K filing with the Securities and Exchange Commission.

Under the terms of the forbearance, the sublimit on letters of credit have been reduced to $20 million from $25 million.

The agreement also requires Sundance to meet certain milestones for receiving cash bids for substantially all of the company’s assets and submitting a plan of restructuring and Chapter 11 bankruptcy to the administrative agent.

The amount of outstanding loans is $130.6 million, with letter-of-credit exposure of $16.35 million.

The company has also defaulted on the terms of secured swap agreements that were terminated early without lender consent. The secured swap providers have not entered into the forbearance agreement and are not prevented from seeking legal remedy by the agreement.

The forbearance expires on Feb. 7.

Haynes and Boone, LLP acted as counsel to TD Bank and Opportune LLP as adviser to Haynes and Boone.

Sundance is an oil and natural gas company based in Norwood, Australia, with a wholly owned U.S. subsidiary, Sundance Energy Inc., located in Denver.

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