In Form 8-K filed on September 12, 2017, Camber Energy, Inc. received a Notice of Default and Opportunity to Cure from its senior lender, International Bank of Commerce, stating that the Company was in default under its loan with IBC due to failing to make a required $425,000 loan payment on August 25, 2017. The Notice also cited the Company for several covenant defaults including exceeding a cap on monthly general and administrative expenses; falling below $30 million of net worth; failing to comply with certain post-closing covenants; failing to pay costs and expenses required; failing to meet the requirements of a cash flow test as described in greater detail in the loan agreement; and exceeding the loan to value determination provided for in the loan agreement. The Company has a 30-day cure period under its loan agreement with respect to the covenant defaults. Additionally, the press release further announces that the Company has retained Dykema Gossett as restructuring advisors as it continues to evaluate its strategic alternatives. Read more on distressed companies.
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