As stated in Form 8-K filed on April 5, 2016, Chaparral Energy, Inc. did not make the interest payment on the 8.25% Senior Notes within the 30-day grace period. As a result, an event of default occurred on April 1, 2016 and is continuing under the indenture governing the 8.25% Senior Notes, of which $384 million principal amount was outstanding on that date. As previously announced, on March 1, 2016, the Company elected not to make the interest payment on the 8.25% Senior Notes. Under the indenture governing the 8.25% Senior Notes, the failure to make the interest payment was subject to a 30-day grace period before constituting an event of default.
On April 7, 2016, Moody’s Investors Service downgraded Chaparral Energy, Inc.’s corporate family rating to C from Ca, its probability of default rating to C-PD/LD from Ca-PD and its unsecured notes rating to C from Ca following the Company’s announcement that it did not make the interest payment due on its 8.25% Senior Notes following the expiration on April 1 of the 30-day grace period with respect to its March 1, 2016 scheduled payment date. Read more on distressed companies.
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