Rooster Energy Ltd (CVE:COQ) Updates On Note Purchase Agreement

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Rooster Energy Ltd (CVE:COQ) has fulfilled with terms of the Third Amendment, finalized March 10, 2017, to the Restated and Amended Note Purchase Agreement dated November 17, 2014, as restated and amended as of June 25, 2015 with the senior secured notes holders issued depending to the NPA.

Particularly, a non-binding term sheet was finalized with the holders this date placing forth the general terms of a possibly acceptable rearrangement of the NPA. Moreover, as required by the Third Amendment terms, the firm has on this date compensated the applicable interest unpaid on the Notes that was payable and due on February 28, 2017 and January 31, 2017. Following the Third Amendment, the note holders settled to extend until March 24 the payment dates awaiting satisfaction of all other conditions of the Third Amendment.

The details

Rooster Energy is and continues to perform business as usual and will persist in negotiations with the holders to rearrange the terms and conditions of the note purchase agreement and its obligations thereunder as per the term sheet.

However, the notes holders may exercise their solutions against the firm at any time as there is no forbearance deal in place. In that case, or if the firm is ultimately unable to close documentation to satisfactorily rearrange the NPA, then the firm would in all likelihood want relief under applicable bankruptcy or restructuring laws to reserve the going concern value of the firm.

Rooster Energy is a Houston based vertically integrated gas and oil production firm combined with a well service plugging/ intervention and abandonment subsidiary unit focused in the U.S. Gulf of Mexico. The main business is a service firm whose assets comprise of rigless well plugging and intervention/ abandonment units and gas and oil resources comprise of producing gas and oil wells based on the U.S. federal gas and oil leases.

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