HOUSTON, Sept. 2, 2014 /PRNewswire/ -- Endeavour
International Corporation (NYSE: END) (LSE: ENDV) today announced
that it has decided not to pay approximately $33.5 million in interest due on September 2, 2014 on its 12% First Priority Notes
due March 2018, 12% Second Priority
Notes due June 2018 and 6.5%
Convertible Senior Notes due November
2017 ("collectively, the Notes"). Under the term of the
indentures for the Notes, there is a 30-day grace period during
which the Company may elect to make the interest payment and cure
any potential event of default for non-payment.
A company spokesperson stated: "The Company initiated
conversations with representatives of its various debt holders in
June. To date, those discussions have not resulted in a
constructive resolution regarding the Company's capital
structure. We believe it is in the best interest of all
stakeholders, debt and equity, to expeditiously address the
Company's capital structure with the goal of reducing debt and the
cost of capital to position the Company for the future.
Endeavour intends to use the 30-day grace period to continue
discussions with all its debt providers."
The Company is engaged in discussions with representatives of
certain holders of its various classes of indebtedness regarding
the potential terms under which the Notes could be restructured so
as to deleverage the Company. If the Company decides not to make
the payments by the end of the grace period, the requisite holders
of the Notes could accelerate the repayment of the principal
payments due. This action would result in cross-defaults to certain
other indebtedness of the Company and its subsidiaries, including
indebtedness of its Endeavour Energy UK Limited subsidiary. The
Company is in discussions with certain creditors and their
representatives with respect to obtaining certain amendments and
waivers of default resulting from the non-payment of the
September 2, 2014 interest payments
and is also seeking a refinancing of the indebtedness of Endeavour
Energy UK Limited. No agreements regarding such restructuring,
amendments and waivers or refinancing have been entered into at
this time, and no assurances can be given that the Company's
efforts will result in any such agreements.
About Endeavour International Corporation
Endeavour International Corporation is an oil and gas
exploration and production company focused on the acquisition,
exploration and development of oil and natural gas in the North Sea
and the United States. For more
information, visit www.endeavourcorp.com.
Forward-looking Statements
This press release contains certain "forward-looking
statements," as such term is defined in Section 21E of the
Securities Exchange Act of 1934, as amended, relating to future
events and the financial performance of Endeavour. Such statements
are only predictions and involve risks and uncertainties, resulting
in the possibility that actual events or performance will differ
materially from such predictions as a result of certain risk
factors. As such, readers are cautioned not to place undue reliance
on forward-looking statements, which speak only to management's
plans, assumptions and expectations as of the date hereof. Please
refer to Endeavour's Annual Report on Form 10-K for year ended
December 31, 2013, filed with the SEC
on March 17, 2014, Form 10-K/A filed
on March 21, 2014 and other filings
for a discussion of material risk factors. Endeavour disclaims any
duty to update or alter any forward-looking statements, except as
required by applicable law.
