Creditors are giving Houston liquefied natural gas company Tellurian an 18-month life line in the face of tough market conditions that include the ongoing oil war between Russia and Saudi Arabia and the coronavirus pandemic, the Midland Reporter-Telegram reports.
In a filing yesterday with the U.S. Securities and Exchange Commission, Tellurian reported that Wilmington Trust and other creditors have given the company an extension on $75 million in loans that were due May 23.
Under a new agreement, creditors gave Tellurian until Nov. 23, 2021 to finish paying the loans. Tellurian must make a $3 million payment by April 22 and issue creditors more than 11 million shares of stock.
The new credit agreement comes less than a month after Tellurian laid off more than 40 percent of its 176 employees, reshuffled executives and cut expenses in a bid to save its Driftwood LNG project in Lake Charles.
The proposed facility still lacks enough contracts and financing to support construction but holds a federal permit make and export more than 27.6 million metric tons of LNG per year.