Lucas Energy defaults on debt, weighs sale or outside investment
HOUSTON – Cash-strapped Houston oil producer Lucas Energy, which has properties in the Eagle Ford Shale, said it has defaulted on a debt payment due in December, another sign of hard times in the oil patch.
That left the company with a high 18-percent interest rate on a $7.7 million loan, but Lucas’ lender hasn’t taken any actions yet. The lender waived an interest payment due this month and reserved the right to enter a new agreement with the company or enforce other rights it has when the company defaults.
The company’s debt default comes after oil prices have been cut in half since their 2014 peak in June. Banks and analysts believe a wave of defaults could hit small U.S. oil producers and oil-tool companies if prices remain low for a long time.
“The plunge in crude oil prices has required us to reconsider all alternatives,” Lucas CEO Anthony Schnur said in a written statement Friday. He said the company is looking to sell itself in a merger or acquisition or draw a project financing agreement.
Read more: http://fuelfix.com/blog/2015/02/02/lucas-energy-defaults-on-debt-weighs-sale-or-outside-investment/
[font color=green]The first of many dominoes to tumble...[/font] 
