Dune Energy gets credit facility waiver of change-of-control covenant

By Sara Rosenberg

New York, May 12 - Dune Energy Inc. received a waiver from its credit facility lenders regarding an event of default involving the change-of-control covenant, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

The covenant was breached when, on May 6, holders of the company's $5.1 million senior redeemable convertible preferred stock elected to convert such shares into shares of common stock.

The waiver was obtained on May 11 and is effective until June 9.

In addition, the company is in discussions with lenders regarding an amendment to the facility that, among other things, would increase the size of the commitment and extend the term of the deal.

Dune Energy is a Houston-based energy company.

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