EOTT extends credit facility forbearance, to use grace period on note coupon

New York, Aug. 28 - EOTT Energy Partners LP said it obtained an extension to the forbearance agreement on its credit facility and added that it will use the 30-day grace period for the upcoming bond interest payment due on Oct. 1.

The Houston oil transporter will use the grace period to negotiate restructuring alternatives with holders of its $235 million 11% senior notes.

"Active discussions" are also continuing with Enron Corp. to resolve outstanding issues, EOTT said in a news release.

The extension to the credit facility forbearance is until Oct. 30, 2002. The credit facility is with Standard Chartered Bank and the forbearance had been set to expire on Sept. 16. It covers a total of $500 million of working capital loans, letters of credit, receivables financing and commodity repurchase funding, subject to borrowing base limits.

EOTT violated covenants covering net income, consolidated earnings before interest, taxes and depreciation and consolidated net worth on June 30.

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