Energy XXI
Energy XXI Suspends Dividend Payment on Preferred Shares
HOUSTON, Feb. 26, 2016 (GLOBE NEWSWIRE) -- Energy XXI (NASDAQ:EXXI) today announced that, given the current commodity price environment and the need to preserve liquidity, it has suspended the quarterly dividends on its 5.625% convertible perpetual preferred stock (5.625% preferred stock) and its 7.25% convertible perpetual preferred stock (7.25% preferred stock) for the quarter ending March 31, 2016. As a result, no dividends for the fiscal third quarter will be paid to holders of the 5.625% or 7.25% preferred stock.
The suspension of quarterly dividends does not affect the company's business operations and does not cause an event of default under any of its debt instruments. The Board of Directors will evaluate the Company's dividend policy on a quarterly basis.
Under the terms of the 5.625% and the 7.25% preferred stock, any unpaid dividends, including for the quarter ending March 31, 2016, and any future unpaid dividends, will accumulate. If the company does not pay dividends on its 5.625% and the 7.25% preferred stock with respect to six or more quarterly periods (whether consecutive or non-consecutive), the holders of both series of preferred stock, voting together as a single class, will have the right to elect two additional directors to serve on the Board of Directors at the next annual meeting of shareholders following such event until all accumulated and unpaid dividends are paid in full.
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