Stone Energy Corporation Provides Provision of Notice to Its Banks
Stone Energy Corporation
|Thursday, February 23, 2006
Stone Energy Corporation (NYSE: SGY) has provided notice to Bank of America, N.A., as administrative agent for the banks that are party to its Credit Agreement, of its receipt of notices of non-compliance from holders of its 6.75% Senior Subordinated Notes Due 2014 for failure to file its SEC reports and financial statements. The Credit Agreement requires, as a condition to additional borrowing, that there be no default or event of default under other debt instruments. Accordingly, Stone will be unable to borrow additional funds under the Credit Agreement until it cures any default or event of default by filing its delinquent SEC reports and financial statements. As of February 22, 2006, Stone had borrowings and letters of credit of $186 million under its Credit Agreement. Stone does not expect liquidity problems provided it files its SEC reports and financial statements in mid-March, as currently planned.
Stone Energy is an independent oil and gas company headquartered in Lafayette, Louisiana, and is engaged in the acquisition and subsequent exploration, development, operation and production of oil and gas properties located in the conventional shelf of the Gulf of Mexico (GOM), deep shelf of the GOM, deep water of the GOM, Rocky Mountain Basins and the Williston Basin.