There are times when consumers and even businesses end up in financial dilemmas. Some Iowa readers may be aware that a company, Endeavour International Corp, recently filed for Chapter 11 bankruptcy protection. This proceeding is designed to allow the company to restructure its debt with the goal of stabilizing its finances and providing a framework for making it competitive in the marketplace.
Endeavour is an oil and gas exploration company which had a number of forbearance agreements with creditors in place after missing interest payments on existing debt. The grace period under the forbearance agreements expired on Oct. 1, and Endeavour was not able to meet the interest payments again. Apparently using the decision to file for Chapter 11 relief to its advantage, a restructuring support agreement was reached with its creditors that will decrease its outstanding debt by $568 million. The annual interest will also be reduced by 43 percent, but the creditors are demanding Endeavour emerge from bankruptcy protection by April 2015.