Penn West Resumes Lender Talks on Expected Debt Covenant Breach
- Oil producer sees breaking debt conditions in second quarter
- Company posts quarterly loss of $1.2 billion, misses estimates
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Penn West Petroleum Ltd. is seeking options to avoid defaulting on its loans as the company anticipates breaching debt covenants by the end of the second quarter.
The oil producer is in talks with lenders about possible amendments of covenants, selling assets and hedging positions, the Calgary-based company said Thursday in a statement on its 2015 fourth-quarter earnings results. Penn West reported a loss of C$1.6 billion ($1.2 billion) for the period and cash flow per share of 1 cent, missing the 7-cent average of 11 analysts’ estimates compiled by Bloomberg.