Sandy Creek Energy extends forbearance: report

Sandy Creek Energy Associates LP has extended a forbearance agreement with creditors to April 9, according to Moody's. The forbearance initially extended the debt's November 2020 maturity date through Feb. 8.

According to Moody's, the extension gives the company "additional time to continue negotiating towards an agreed upon debt restructuring." The rating agency adds that the forbearance "constitutes a distressed exchange under Moody's default definition."

Moody's said its Caa2 rating on Sandy Creek "incorporates our expectations for moderate investor losses stemming from the aforementioned debt restructuring."

According to Moody's, Sandy Creek owns a 63.9% stake in Sandy Creek Energy Station, a greenfield nominal 945 megawatt single unit supercritical coal-fired base load electric generating station located near Riesel, Texas.