In Form 8-K filed on February 17, 2015, Quicksilver Resources Inc. announced that the Company has decided not to make the approximately $13.6 million interest payment due February 17, 2015 on its 9.125% senior notes due 2019. Under the terms of the indenture governing the 2019 Notes, the Company has a 30-day grace period before the failure to make the interest payment results in an event of default.
The Company has retained Houlihan Lokey Capital, Inc., Deloitte Transactions and Business Analytics LLP, and other advisors to collectively assist with the evaluation of the Company’s options to address near-term debt maturities, enhancement of its liquidity position, and evaluation of strategic alternatives. However, there can be no assurances that the Company will be able to successfully restructure its indebtedness, improve its short- and long-term liquidity position, or complete any strategic transactions in a timely manner or at all. Accordingly, the Company may need to seek voluntary protection under Chapter 11 of title 11 of the U.S. Code to restructure its capital structure.
On February 19, 2015, Standard & Poor’s Rating Services lowered its corporate credit on Quicksilver Resources Inc. to D from CCC- and the issue-level ratings on the company’s second-lien debt, unsecured notes, and subordinated notes to D from CCC-, C, and C, respectively. “The downgrade reflects the Company’s decision not to pay approximately $13.6 million in interest that was due on Feb. 17, 2015 on its 9.125% senior notes due 2019,” said Standard & Poor’s credit analyst Paul Harvey.
Read more on distressed companies.
The post Quicksilver Resources Potential Default appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.