Endeavour International Corporation has decided not to pay approximately $33.5 million in interest due on September 2, 2014 on its 12% First Priority Notes due March 2018, 12% Second Priority Notes due June 2018 and 6.5% Convertible Senior Notes due November 2017 ("collectively, the Notes"). Under the term of the indentures for the Notes, there is a 30-day grace period during which the Company may elect to make the interest payment and cure any potential event of default for non-payment.
A company spokesperson stated: "The Company initiated conversations with representatives of its various debt holders in June. To date, those discussions have not resulted in a constructive resolution regarding the Company's capital structure. We believe it is in the best interest of all stakeholders, debt and equity, to expeditiously address the Company's capital structure with the goal of reducing debt and the cost of capital to position the Company for the future. Endeavour intends to use the 30-day grace period to continue discussions with all its debt providers."