Business Context and Reporting Period
This Form 8-K is a current report filed by Halcón Resources Corporation (not Battalion Oil Corp) on July 31, 2019. The registrant is incorporated in Delaware and its common stock trades on the OTC Pink market under the symbol HKRS. The report addresses a material definitive agreement regarding the company's senior secured revolving credit facility.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt balances, or liquidity ratios. The document focuses exclusively on a covenant waiver related to a leverage ratio default.
Material Changes and Events
- Covenant Default Waiver Extension: On July 31, 2019, the Company entered into a "Waiver" to its Amended and Restated Senior Secured Revolving Credit Agreement.
- Extension of Deadline: This Waiver extended the termination date for the waiver of a "Leverage Ratio Default" from August 1, 2019, to August 8, 2019.
- Background: This follows an "Eighth Amendment" entered into on May 9, 2019, which initially waived the default resulting from the potential Leverage Ratio Default.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future operations, or a discussion of general risks. The primary contingency identified is the ongoing Leverage Ratio Default, which remains waived only until the new expiration date of August 8, 2019, subject to certain conditions.
Investor Verification Checklist
- Verify the status of the Leverage Ratio Default as of August 8, 2019, to determine if the waiver expired or was further extended.
- Review the full text of the "Waiver" (Exhibit 10.1) to understand the specific conditions attached to the extension.
- Confirm the company's current leverage ratio against the covenants in the Senior Secured Revolving Credit Agreement.
- Check for subsequent filings (e.g., 10-Q or 10-K) to assess the company's overall financial health and liquidity position.