Boston, MA 09/04/2014 (wallstreetpr) – Independent oil and gas company, Endeavour International Corporation (NYSE:END) investors had to encounter twin issues. The company disclosed that it would not make interest payments on its first and second Priority Notes and Convertible Senior Notes. The other blow was an insider resorted to selling shares at a time when their support was much needed.
Interest Payments
The interest payments were due on September 2 for Endeavour International Corporation (NYSE:END)’s 6.5% Convertible Senior Notes due November 2017 and first and second Priority Notes due March and June 2018 respectively, a statement issued by the company said. The provisions in the Notes allow the company a 30-day grace period to make interest payment. It had to make about $33.5 million towards interest payment alone.
Endeavour International indicated that though it had initiated discussions with representatives of debt holders in June, it had not produced any constructive resolution of its capital structure. The company said that it was necessary for all the investors, be it equity or debt, to urgently address the capital structure issue with the sole aim of cutting down the debt and capital cost so as to position itself for future potential.
Endeavour International Corporation (NYSE:END) said that it planned to use the grace period to continue its discussions with various types of debt holders to reach an understanding. In case the company fails to make interest payment before the 30-day grace period, the Notes holder could seek principal payments quickly. This would lead to cross-defaults to some other indebtedness of Endeavour, as well as, its subsidiaries.
Insider Sell Shares
One of the big shareholders of Endeavour International Corporation (NYSE:END), Talisman Realty Capital Master, had sold 1.5 million shares on September 2 and 3 at an average cost of 69 cents a share, according to a filing with the Securities and Exchange Commission. The company had divested 950K shares for $751K on September 2 and another 550K shares on September 3 for $297K. It meant that it had sold its entire holding in Endeavour.
