Item 8.01 Other Events.
As previously indicated in its Quarterly Report on Form 10-Q for the nine months
ended September 30, 2020, Sundance Energy Inc. (the "Company") was not in
compliance as of such date with respect to (a) the Asset Coverage Ratio under
its second lien term loan facility or (b) the Total Debt to EBITDA Ratio or
minimum Current Ratio under its senior secured revolving credit facility. In
addition, pursuant to the second lien term loan facility, the Company was
required to enter into a restructuring support agreement with its lenders by
November 30, 2020 which did not occur. As a result of such non-compliance, the
Company was unable to deliver applicable compliance certificates under such
facilities and cross-defaults under each facility were triggered. While they
have not yet done so, these events of default allow the lenders to demand
immediate repayment of the amounts outstanding under our credit facilities.
The Company has not yet received waivers or amendments from the lenders to waive
or otherwise address these events of default. The Company continues to actively
work with the lenders under each facility to provide for any waivers,
amendments, or forbearances necessary, although there can be no assurances that
the Company will be able to do so. If the Company is unsuccessful in its
efforts, it may be necessary for the Company to seek protection from its
creditors under Chapter 11 of the U.S. Bankruptcy Code, or such creditors may
seek other remedies.
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