Delta Petroleum DIP facility forbearance agreement extended to July 30

By Caroline Salls

Pittsburgh, July 20 - Delta Petroleum Corp.'s debtor-in-possession credit facility forbearance agreement has been extended to July 30 from July 16, according to an 8-K filed Friday with the Securities and Exchange Commission.

As previously reported, under the agreement, the lenders may make additional loans during the forbearance period, and, effective July 1, all obligations to the lenders will bear interest at the 15% default rate.

In addition, the company said it implemented a "reduction in force" on July 13 in connection with its ongoing Chapter 11 proceedings. This reduction included acting treasurer and chief financial officer Kevin K. Nanke.

Delta said chief restructuring officer John T. Young Jr. has been appointed as CFO, and Conway MacKenzie, Inc. director R. Seth Bullock has been appointed as Delta Petroleum's treasurer.

Delta Petroleum, a Denver-based oil and gas exploration and development company, filed for bankruptcy on Dec. 15, 2011 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 11-14006.

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