company, which has hired Jefferies LLC to help with a potential
restructuring, said it had sufficient liquidity to make the
interest payment in full.
Several oil producers, whose cash flows have been squeezed by a
70 percent fall in oil prices since June 2014, have begun
discussions with creditors to defer payments and improve
liquidity to help weather the prolonged slump.
Warren Resources has 30 days to pay interest on the senior notes
due 2022. If the company does not make the payment by then it
would qualify as default.
Warren Resources has $167.3 million outstanding on the notes.
"We look forward to using the interest payment grace period to
begin discussions aimed at achieving an improved capital
structure that, in light of challenging commodity prices, would
be viable in the long term," Chief Executive James Watt said in
Up to Friday's close, Warren Resources' stock had fallen nearly
85 percent in 12 months.
(Reporting by Anet Josline Pinto in Bengaluru; Editing by Maju
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