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Penn West receives noteholder waivers in wake of multiyear review of statements

An oilfield pump jack, belonging to Penn West Exploration

LARRY MACDOUGAL/The Canadian Press

Penn West Petroleum Ltd. says holders of its unsecured notes have provided waivers that give the company until at least Oct. 14 to fix defaults arising from the previously announced restatement of its historical financial results.

The Calgary-based company announced on July 29 that an internal review going back more than four years had revealed hundreds of millions in expenses had been classified incorrectly.

It also said the review would result in a restatement of previous financial reports for at least 2012 and 2013, as well as for the first quarter of 2014. It also has delayed completion of Penn West's full second-quarter report, which was due Aug. 14.

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Penn West said Thursday the waiver from unsecured noteholders will extend the cure period for the defaults until Oct. 14, giving the company time to deliver its restated historical and 2014 financial statements.

It said the defaults to its unsecured notes don't relate to financial tests under its agreements.

Penn West had previously received waivers from the defaults under its bank lending agreements. It announced on Ayg. 12 that it had access to up to $660-million under the bank facility, of which $250-million had been drawn.

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