Three weeks ago Rex Energy filed a notice with the Securities and Exchange Commission to alert shareholders that the company has defaulted on an interest payment due on senior notes (see Rex Energy Defaults on IOUs, Can’t File Annual Report on Time). Rex said in the filing that the noteholders to whom payment is due (Angelo, Gordon & Co.) signed a temporary “forbearance” agreement that gives Rex a little breathing room–until April 16 to pay up. Angelo, Gordon & Co. promised not to take any action until that date. April 16 arrived without a deal, so Rex and Angelo signed a second forebearance agreement giving Rex another extension–until April 23–to either pay or agree to a new deal (see Rex Energy Gets 1 Extra Wk to Pay Defaulted IOU, Files Annual Report). April 23 came and went with no deal, and once again Rex and Angelo signed an agreement, the third such forbearance agreement, giving Rex one more week. Rex is not only having trouble paying its debt obligations, a few weeks back Rex’s stock was relegated to the penny stock Pink Sheets (see Rex Energy Stock De-Listed by Nasdaq as of April 12th). We have no inside knowledge of what’s happening behind the scenes, but we’re sure of this: There is a lot of heated discussion taking place. Rex previously floated the possibility of declaring bankruptcy. One thing’s for sure–something will have to happen soon…
