Energy XXI Said to Plan to Pay Overdue Bond Interest This Week

Energy XXI Ltd., which warned about a potential Bankruptcy Bankruptcy Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Read this Term filing just a week ago, has told investors it plans to pay $8.8 million of overdue bond interest before a grace period expires this week, according to a person with knowledge of the matter.

The struggling oil driller, which hired restructuring advisers PJT Partners and Vinson & Elkins, is continuing talks this week with creditors about how to restructure about $2.9 billion of debt, said the person, who asked not to be identified because the negotiations are private.

A spokesman for Energy XXI declined to comment.

Houston-based Energy XXI has struggled under the weight of its debt load amid a plunge in oil prices. It suspended dividend payouts on preferred shares last month. The company, which has been talking to investors about exchanging some of their debt to cut its total liabilities, hasn’t been able to get the transaction done.

The company skipped a Feb. 16 interest payment on $214 million of 8.25 percent unsecured notes, entering a 30-day grace period to make the payment or face default. It warned in a March 7 regulatory filing that, absent a material improvement in oil and gas prices or a debt restructuring or other deal that improves its Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term, it may seek to file for bankruptcy protection.

To contact the reporter on this story: Jodi Xu Klein in New York at jxu205@bloomberg.net. To contact the editors responsible for this story: Nabila Ahmed at nahmed54@bloomberg.net, Shannon D. Harrington

By: Jodi Xu Klein

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