By Oliver Griffin

Nighthawk Energy PLC (HAWK.LN) said Tuesday that it has filed for chapter 11 of the U.S. Bankruptcy Code in Delaware along with its subsidiary, Nighthawk Royalties LLC, after it defaulted on a loan last month.

On April 19, the oil-and-gas company received a default notice from the Commonwealth Bank of Australia (CBA.AU) regarding a loan with a principal balance of $21.3 million, subjecting it to possible asset foreclosures.

The company said it has entered into a non-binding letter of agreement with an investment banker to explore selling one of its assets either on or before June 1, the maturity date of its credit agreement with the CBA.

Nighthawk Energy said that as a result of the bankruptcy filing, its shares will be suspended as of 0730 BST (0630 GMT).

The company said it remains open to discussions with its major stakeholders regarding a possible alternative proposal for restructuring the CBA loan and the recapitalization of the company.

Write to Oliver Griffin at oliver.griffin@dowjones.com

(END) Dow Jones Newswires

May 01, 2018 03:12 ET (07:12 GMT)

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