AREX - Approach Resources Gets A Little More Time
Approach Resources (AREX) has been given another month by its credit facility lenders. Despite this temporary reprieve, its future remains quite murky due to its high amount of leverage. Approach's debt is mostly concentrated in its credit facility, which limits its ability to deleverage by converting debt to equity in restructuring and leads to a fairly high chance that it will eventually liquidate.
Forbearance Agreement
I previously noted that Approach Resources had an agreement that its credit facility lenders would not take action on Approach's breach of various credit facility covenants until at