Business Context and Reporting Period
This Form 8-K was filed by California Resources Corp on July 12, 2020. The report details the entry into a material definitive agreement regarding the amendment of existing forbearance agreements with major lenders.
Key Financial Metrics
The filing does not provide specific values for revenue, profit, cash flow, margins, debt balances, or liquidity ratios. The document focuses exclusively on the status of credit agreements and forbearance terms.
Material Changes
On July 12, 2020, the Company amended forbearance agreements originally dated June 2, 2020, with lenders representing a majority of the outstanding principal under three credit facilities:
- 2014 Credit Agreement (Administrative Agent: JPMorgan Chase Bank, N.A.)
- 2016 Credit Agreement (Administrative Agent: The Bank of New York Mellon Trust Company, N.A.)
- 2017 Credit Agreement (Administrative Agent: The Bank of New York Mellon Trust, N.A.)
The amendments extend the period during which lenders will forbear from exercising remedies regarding specified events of default.
Outlook, Risks, and Contingencies
The extended forbearance period is set to expire at the earlier of 11:59 p.m. (New York time) on July 15, 2020, or the date the agreements otherwise terminate. The agreements include specific covenants the Company must comply with during this period. Failure to comply with these covenants could result in the early termination of the forbearance period, potentially triggering lender remedies.
Investor Verification Checklist
- Verify the specific covenants required under the amended Forbearance Agreements.
- Confirm the Company's compliance status with these covenants as of the July 15, 2020 deadline.
- Monitor for subsequent filings regarding the termination of the forbearance period or the exercise of remedies by lenders.
- Review the total outstanding principal amounts under the 2014, 2016, and 2017 Credit Agreements in the most recent 10-K or 10-Q.