Escalera Resources Co. (fka ESCRQ)

[CalderQuacks]

9/28 8-K

Item 1.01 Entry into a Material Definitive Agreement.

On September 22, 2015, the Company entered into a Negotiation Agreement (the “Negotiation Agreement”) with its credit facility lenders. The Negotiation Agreement includes guidelines for more detailed discussions and negotiations between the Company and its credit facility lenders regarding the Company’s liquidity needs, projected cash flows, and insolvency considerations, among other things. Under the Negotiation Agreement, anything discussed or negotiated between the parties is not binding until such considerations and/or terms are included in a written definitive agreement executed by all parties to the Negotiation Agreement. The Company and its subsidiaries also acknowledged several events of default exist under the credit facility and that as a result the credit facility lenders are terminated from any further credit extensions to the Company.

The Negotiation Agreement also provides for the credit facility lenders to make introductions and/or initiate communications with potential partners, investors, or lenders and the Company. Additionally, the Negotiation Agreement requires the Company to advance $50,000 for the engagement of a financial advisor for the credit facility lenders, as provided for under the Company’s credit agreement.

There can be no assurance that the Negotiation Agreement will result in any favorable outcome for the Company.

http://www.sec.gov/Archives/edgar/data/29834/000002983415000039/escr-20150922x8k.htm